Bidders line up for DRK Kliniken Thüringen Brandenburg

Interest is said to be high for the hospitals in German group DRK Kliniken Thüringen Brandenburg after it fell into insolvency at the end of last year. Local newspapers report that at least 12 parties are conducting due diligence.

“Which interested parties will then actually submit a takeover bid, can not yet be estimated,” said Martin Wohlrabe, spokesman for the trustee consortium, speaking to the Thüringer Allgemeine.

The group’s hospitals of Sondershausen, Bad Frankenhausen and Sömmerda are up for sale after the group, which is a subsidiary of the Thüringer Landesverband des Deutschen Roten Kreuzes (Thuringian State Association of the German Red Cross), filed for self-administered bankruptcy on 12 December.

Consulting firm WMC was appointed to manage the restructuring. A number of options are on the table. Of specific concern is Bad Frankenhausen with fears that it could be closed during the bidding process. Local reports said that it had annual losses of €5.5 million (US$6.3 million).

Provisional administrator Rainer Eckert said that over the next few days, tenders would be evaluated and a decision would be made which bidding groups would move on to the next phase in early March.