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Petersen Health Care's properties could be sold off by end of July under company's proposed timeline

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Petersen Health Care

Petersen Health Care is asking a federal bankruptcy judge to approve a sale timeline that would see its nursing homes divested to new ownership by the end of July.

The Peoria-based nursing home company filed for Chapter 11 bankruptcy in Delaware earlier this year. The company owes at least $295 million to its creditors.

Petersen also wants court permission to nail down an agreement with one or more stalking horse bidders. That's essentially a reverse bid the company would hammer out with a potential buyer before an auction. That would allow Petersen to set a higher minimum asking price and stave off low bids for the company's assets.

An attorney representing Petersen said in March the company believes its nearly 100 facilities scattered across Illinois, Iowa, and Missouri are worth somewhere between $215 and $305 million.

In court filings, Petersen Health Care's representatives say it's more likely the company will be broken up and sold off to multiple buyers. The sale will be brokered by Bethesda, Md.-based investment firm Walker & Dunlop.

Petersen Health Care said in a May 1 court filing there are 20 bids to date. One of those bids is for 41 properties. Another large bid would include "virtually all" of Petersen's facilities, but the filing notes that offer is "still being analyzed."

Creditor X-Caliber Funding remains embroiled in a dispute over Petersen's ability to file for bankruptcy on behalf of the eight properties currently managed by their court-appointed receiver. The company asked Walker & Dunlop investment broker Mark Myers to take a deposition on Friday.

Other creditors in the Petersen case have expressed concerns the move by X-Caliber will drag out the sale process.

Tim is the News Director at WCBU Peoria Public Radio.