Bidders pick over what’s left at Medical Capital HQ
Items small (Christmas ornaments) and large (a 2007 Lincoln Mark LT four-door truck) went up for auction last week at the Tustin, Calif., headquarters of Medical Capital Holdings, a healthcare finance company that is facing a fraud complaint by the Securities and Exchange Commission. (Two executives also named in the complaint have asked the court to dismiss the lawsuit.)
In August, Medical Capital fell under the control of a court-appointed receiver who, according to court filings, has been unloading some assets in an effort to preserve Medical Capital’s value for investors.
The auction successfully sold off plants, bookcases, televisions, espresso machines and filing cabinets, first-aid kits, space heaters and framed prints of fruit, dogs, boats and cowboys. Leather chairs went for $200 to $350, according to a Web site for bidders. Laptops sold for $100. A lot of 50 golf putters went for $180.
Not all efforts to sell off Medical Capital assets have gone as smoothly as the auction. Court records show the receiver has had some difficulty closing deals to sell a hospital in Atlanta and outstanding loans to a California health system.
Nonetheless, two bidders have made offers on the Home Stretch, the luxury yacht owned by a Medical Capital subsidiary, and counteroffers come close to the nearly $3 million asking price. And further evidence of the receiver’s efforts may be coming soon to a theater near you. In the latest monthly report to the court, the receiver says various deals have secured an April release date for “The Perfect Game,” a film about the Little League World Series starring Cheech Marin that was partly financed by Medical Capital.