Pauls Valley Democrat
As the due diligence period for St. Anthony’s purchase of Pauls Valley General Hospital continues, for those working with the city government, the process is going as smoothly as they could hope.
That at least was confirmed this week when even a special hospital authority and city council meeting called turned out to be routine, dealing with settling old hospital debts, according to City Attorney Jay Carlton, whose office hosted involved parties.
Included in the meetings was an executive session discussion on handling one of several creditors filing pending lawsuits to collect some of the debt owed and offering an extension on a loan.
It was back near the end of May when the hospital authority approached St. Anthony while they were still only the managers in the lease agreement for a short term loan, according to an earlier story in the Democrat.
With an option to go as high as $350,000 after an initial limit of $125,000 to cover immediate capitol needs the first payment covering interest was due back in August.
This recent meeting to ask for an extension was actually called since the Hospital Authority needed more time as a balloon payment for the rest of the loan came due on Nov. 30, according to Carlton. It also made sure that the due diligence could continue without any delay to the overall process.
As far as pending lawsuits for debt collection, this is also part of the agreement reached since part of a purchase would be St. Anthony relieving the city and the authority of all debt incurred, said Carlton. The steps now are waiting for the rest of the 90 day due diligence period that began in late October to pass, which involves SSM Oklahoma reviewing all records and evaluating all departments.
If St. Anthony and the city are still in agreement on a proposal after that time, the city and authority would then enter into an official contract after about an additional 60 days. Though the date is not officially set on when a sale would be completed, it would not likely start any earlier than April 2013.
“We’re still in the due diligence 90 day period,” said Carlton. “Hopefully the culmination of which will be signing a sale agreement.”