The prospective buyer of two Chester County hospitals has failed to post a $1 million bond that was necessary to continue the process of purchasing the facilities from their current owner, Tower Health.
As of midnight Thursday, the bond had not been received by the Chester County Prothonotary’s Office, which handles such filings in civil cases. The bond was required of Canyon Atlantic Partners within 10 days of Judge Edward Griffith’s Feb. 14 order granting a preliminary injunction and resetting the purchase of Brandywine and Jennersville hospitals.
Their current owner, Tower Health of Reading, announced in December that it was cancelling a proposed sale of the two hospitals to Canyon, citing financial and regulatory problems encountered during the transfer process.
Griffith ruled that by doing so Tower had broken its contract of sale with Canyon and ordered the parties back to square one in the sale process. But he said that for Canyon to continue, it would have to post a $1 million bond with the court.
An attorney for Canyon on Friday confirmed that the Texas-based company had not posted the bond. He gave no immediate explanation.
The news caught supporters of the two hospitals, which closed in December and January, by surprise.
“I heard about it late last night,” said Dr. Bruce Colley of Downingtown, the president of the Chester County Medical Society, in an interview Friday. “I am obviously disappointed, and I do not have the back story. I was caught off guard, and I do not know if it means that’s the end (of the proposed sale), or if it is a legal maneuver.
“I don’t know whether this means we start from Ground Zero,” Volley said. “I’m still totally in the blank.”
A spokeswoman for Tower Health did not offer and immediate comment.
To contact staff writer Michael P. Rellahan call 610-696-1544.
Source: Berkshire mont
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