Hampshire County commissioners on Tuesday authorized the clerk to submit a proof of claim in the bankruptcy of Genesis Healthcare, a step county officials say is intended to preserve the county’s right to recover unpaid rent if the facility’s estate makes distributions.
Commissioner Mance, who prepared the completed form and recommended the action, told the commission that filing a proof of claim is an administrative step in bankruptcy to record the county’s claim for back rent. “This isn't necessarily the same as us joining a lawsuit,” he said, describing the filing as a precursor that will inform later decisions about retaining counsel or negotiating with a prospective purchaser.
The commission voted to authorize the clerk to act as the county’s agent and submit the claim through the bankruptcy portal. No additional legal action was immediately authorized; commissioners said they will wait to see how the bankruptcy process unfolds before deciding whether to retain outside counsel or pursue other remedies.
Separately, commissioners discussed a pending offer to purchase the Hampshire Center, which is operated by Genesis Healthcare and whose operator is in bankruptcy. Commissioners said they have initiated research, sought an appraisal and will convene a stakeholder meeting that includes county staff, legal counsel, the sheriff and other parties who would have a role in a sale or transition of operations.
President Egglazer said the county has difficulty locating appraisers willing to value a facility of that type but that appraisal work is underway. Commissioners agreed to have the clerk coordinate scheduling and notify potential stakeholders; the development of an appraisal and other information will inform whether the county moves forward with a sale or pursues other options.
The nut graf: County action preserves the commission’s ability to seek repayment through the bankruptcy process while opening coordinated review of a potential sale that could affect county services, employees and property responsibilities.
Commissioner Mance told the commission the proof-of-claim form focuses only on back rent and uses documentation Clerk provided on the county lease and missed payments. He said the county could either have the clerk submit the form as an authorized agent or retain counsel to submit the filing; the commission chose the former for now.
Commissioners said additional steps could include negotiation with a prospective purchaser, conversations with the county’s prosecuting attorney and consideration of legal counsel depending on how the bankruptcy and sale process unfolds. Commissioner Mance recommended patience while “the dust settles” in the coming weeks before deciding on retention of counsel or further steps.
The motion authorizing the clerk to submit the proof of claim passed unanimously; commissioners also approved scheduling a stakeholder meeting to gather county staff and other interested parties to review appraisal results and other information should the proposed sale proceed.