Bid­ders pick over what’s left at Med­i­cal Cap­i­tal HQ

Modern Healthcare - - Outliers -

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.