OK sought for MedCorp's sale
8/13/2011The trustee in the MedCorp Inc. bankruptcy case has asked a judge to clear the way for a pending sale of the company to a New York City equity fund.
The Toledo ambulance company filed for Chapter 11 bankruptcy protection in June after a Lucas County Common Pleas Court judge ordered its sale to Enhanced Equity Fund LP. The bankruptcy filing, submitted by MedCorp owner Richard Bage, halted the pending deal, which was part of a receivership case.
According to a filing submitted this week in U.S. Bankruptcy Court in Toledo, trustee John Graham asked Judge Richard Speer to approve the sale of MedCorp's assets to American Ambulette & Ambulance Service Inc., a Dayton ambulance firm that is owned by Enhanced Equity.
In his filing, Mr. Graham said the sale "is in the best interests of the debtors' estates, their creditors, and all parties in interest," and should happen "as soon as possible."
Mr. Bage, his attorney, and a representative for Enhanced Equity could not be reached for comment Friday.
Mr. Graham's filing shows Enhanced Equity submitted another purchase agreement this week to buy the financially troubled company. It says Enhanced Equity, which bid $5.3 million for the business in Lucas County court, has offered an additional $200,000 for the company's assets, plus $1.4 million to buy property owned by Stickney Avenue Investment Properties LLC.
Stickney Avenue, which also has filed for Chapter 11 bankruptcy protection, is owned by Mr. Bage's wife and MedCorp co-founder Laurie Bage. That firm owns MedCorp's headquarters at 745 MedCorp Dr. in Toledo, along with other MedCorp-affiliated properties.
MedCorp has about 720 employees at 22 facilities in Ohio. More than 200 are in Toledo.
Enhanced Equity has said it plans to keep the ambulance company's headquarters, administrative functions, and employees in Toledo and retain the MedCorp name if the company's sale goes through.
Contact Sheena Harrison at: sharrison@theblade.com or 419-724-6103.