The Carlyle Group's LifeCare saga continues. Carlyle's LifeCare Hospitals ownership began auspiciously. Weeks after Carlyle purchased LifeCare, twenty five patients died in Hurricane Katrina's aftermath. The Bush White House helped Carlyle keep their good name by not mentioning the hospital with the highest patient death toll in Fran Townsend's Lessons Learned report.
After seven years of bad luck, i.e. Carlyle ownership, LifeCare went on financial life support, entering bankruptcy. Law360 reported:
The U.S. government asked a Delaware bankruptcy judge Friday to upend the proposed sale of LifeCare Holdings Inc.’s 27 hospitals, saying the private equity-owned company can’t pay potentially $24 million in taxes on the deal.
Texas-based Lifecare — owned by Carlyle Group LP — has received a $320 million credit bid for its assets from lenders. But the stalking horse bid is substantially higher than the tax basis of the assets, resulting in a big tax bill that the company concedes it can’t cover.
Heaven forbid Carlyle's billionaire co-founders make good on their affiliate's commitments.
LifeCare's news release on the "acquisition" stated:
The Company has entered into a commitment for a $25 million debtor in possession financing facility arranged by JPMorgan Chase which is subject to court approval Additionally, the Company enters the Chapter 11 process with ample liquidity, having approximately $20 million of cash on hand.
Carlyle's co-founders would rather pay anything but taxes.
