EYEWITNESS NEWS (WBRE/WYOU) — The non-profit WoodBridge Healthcare Inc. announced on Tuesday the agreement to acquire Commonwealth Health has been terminated.
28/22 News previously reported that WoodBridge Healthcare Inc. announced they signed a contract to acquire Commonwealth Health back in July from subsidiaries of Community Health Systems Inc.
WoodBridge spokesperson Letitia Fecher explained they retained Zeigler, an investment banking firm, to secure deal funding for the acquisition through the allocation of tax-exempt bonds and gave a "highly confident letter" to WoodBridge in April.
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A highly confident letter was an indication that Ziegler was highly confident they could sell the bonds, but is not a binding commitment, according to Fecher.
However, Ziegler wasn't able to sell the bonds and without the bond financing, Fecher says the agreement for WoodBridge Healthcare to acquire Commonwealth Health is terminated.
“We very much looked forward to being part of the Scranton and Wilkes-Barre communities and partnering with the Commonwealth Health staff and physicians on providing the best healthcare in the region. CHS has gone out of its way to help get this deal done including significant concessions on their part. We appreciate all their efforts to do so," Chairman of the Board of WoodBridge Healthcare, Inc. Joshua Nemzoff said.
