A Last-Minute Deal Keeps the Doors Open
However, with the clock ticking, negotiations between Sywood and the union intensified. Attorneys for both Cold Spring and Sywood confirmed at Thursday’s hearing that the buyer had successfully reached an agreement with the union, reviving the sale.
“The goal of the receiver and the buyer is to put in significant capital expenses, make significant improvements, and allow the facility to once again be occupied at full capacity,” said Schuyler G. Carroll of Manatt Phelps & Phillips LLP, representing Cold Spring. Without court approval, he warned, the facility would have closed, creating chaos for its vulnerable residents.
Following a brief recess in the hearing to finalize sale terms, Cold Spring requested immediate court approval to allow Sywood to assume operations under a receivership while state regulators review the sale. With no further objections raised, Judge Lane promptly signed off.
“No judge wants to preside over a case where an institution like this is closed. That’s not a result anyone is looking for, and you all have managed to give us a much better option,” Judge Lane said.
