IN THE UNITED STATES BANKRUPTCY COURT  FOR THE SOUTHERN DISTRICT OF IOWA   In re QHC Facilities, LLC et al.1          Case No. 21-01643-als11    Debtor(s)    MEMORANDUM OF DECISION  (date entered on docket: January 26, 2023)   Before the Court are Motions for Summary Judgment and Objections thereto filed on  behalf of Cedar Healthgroup, LLC and the Debtor, as well as pleadings filed on behalf of Lincoln Savings Bank and the Official Committee of Unsecured Creditors. The Court has jurisdiction of this matter pursuant to 28 U.S.C. §§ 157(b)(1) and 1334. For the reasons stated the Motion for Summary Judgment is granted in favor of Cedar Healthgroup, LLC for the return of its deposit.  BACKGROUND  The following overview is derived from the pleadings and orders appearing on the docket  to provide a context for the pending matters.  Bankruptcy petitions for QHC Facilities, LLC and nine of its related entities (hereinafter  “Debtor”)2 were filed on December 29, 2021 and are being jointly administered. Within a month of the petition date the Debtor filed two Motions related to its continued operations pending a sale of its assets. A Motion to Obtain Secured Credit (ECF 120) was granted authorizing the Debtor to borrow $2M from its senior secured lender, Lincoln Savings Bank (LSB) to fund the business operations until a sale could be facilitated. (ECF 172). The Debtor’s second Motion requested approval of bidding and sale procedures (ECF 117) that required the successful bidder to enter into    1  The Jointly Administered Debtors in this proceeding areIn re QHC Management, LLC (Case No. 21-01644-als11),  In re QHC Mitchellville, LLC(Case No. 21-01645-als11),In re QHC Winterset North, LLC(Case No. 21-01646-  als11),In re QHC Madison Square, LLC(Case No. 21-01647-als11),In re QHC Fort Dodge Villa, LLC(Case No.  21-01648-als11),In re Crestridge, Inc.(Case No. 21-01649-als11),In re Crestview Acres, Inc.(Case No. 21-01650-  als11),In re QHC Humboldt North, LLC(Case No. 21-01651-als11),In re QHC Humboldt South, LLC(Case No.  21-01652-als11) andIn re QHC Villa Cottages, LLC(Case No. 21-01653-als11).  2  The Debtors’ assets were sold subject to the terms of the Asset Purchase Agreement executed by the parties. The  singular term “Debtor” is used here for ease of reference.  Case 21-01643-als11 Doc 593 Filed 01/26/23 Entered 01/26/23 17:01:27 Desc  Main Document Page 1 of 9

Document 593