Kramer Levin Naftalis & Frankel Represents Saint Vincent's Catholic Medical Centers in $260 Million Manhattan Campus Sale to Rudin/North Shore LIJ Health System

Deal Approved Today by U.S. Bankruptcy Court Enables Rudin and North Shore LIJ to Develop 24-hour Emergency and Ambulatory Care Center to Restore State-of-the-Art Medical Services to Greenwich Village

NEW YORK April 7, 2011  - Today the U.S. Bankruptcy Court for the Southern District of New York approved the $260 million sale of the Saint Vincent Catholic Medical Centers Manhattan Campus to the Rudin family and North Shore LIJ.  The Rudins and North Shore LIJ are partnering to develop the first stand-alone 24-hour emergency and ambulatory surgical facility in the New York metropolitan area. This pivotal transaction will restore comprehensive state-of-the-art medical care to the Greenwich Village neighborhood following Saint Vincent's Chapter 11 filing.

The new medical center is targeting a fall 2013 opening and will be part of a larger mixed-use residential project.  Saint Vincent's is selling its Manhattan Campus consisting of the buildings on the East Side of Seventh Avenue to the Rudin family and contributing the landmark O'Toole Building on the West Side of Seventh Avenue to North Shore-LIJ for $260 million.  The Rudin family intends to build 590,000 square feet of new residential developments on the East Side portion of the campus.  North Shore-LIJ plans to invest $110 million to renovate and redevelop the O'Toole building into "North Shore-LIJ Center for Comprehensive Care," while maintaining its unique façade.  The Rudin family is providing $10 million to partially offset North Shore-LIJ's costs.  This transaction is one of the few significant real estate development projects to be assembled in Manhattan in the past four years and it furthers Saint Vincent's objectives in realizing substantial value for its stakeholders while reviving health care services in the Greenwich Village community.

Kramer Levin Naftalis & Frankel LLP served as lead counsel for Saint Vincent's, along with its chief restructuring officer, Mark Toney at Grant Thornton LLP, on this complex healthcare bankruptcy and real estate transaction. 

"This remarkable transaction represents an excellent outcome for all parties involved," said Kenneth Eckstein, Corporate Restructuring and Bankruptcy co-chair and partner at Kramer Levin.  "Saint Vincent's sought a creative solution to its debt issue that would enable it to successfully resolve its bankruptcy case, as well as maximize real estate values with a commitment to creating a new healthcare center to the neighborhood it so proudly served for so many decades. "

The Kramer Levin team consisted of Corporate Restructuring and Bankruptcy partners Kenneth H. Eckstein and Adam C. Rogoff, Real Estate partners Jay A. Neveloff and Neil R. Tucker, Bankruptcy associates Gregory G. Plotko and Anupama Yerramalli, and Real Estate associates Daniel R. Berman and Jessica A. Tong.