The trustee for the former owner of Saint Catherine Medical Center Fountain Springs has asked a federal bankruptcy judge for permission to sell both the building and the land on which it sits.
In a motion filed Thursday, William G. Schwab, Lehighton, said it is in the best interest of the creditors of Saint Catherine Hospital of Pennsylvania LLC to sell the building and land, known as real property, at 101 Broad St., Fountain Springs, Butler Township.
"The sale is to be free and clear of all liens and encumbrances," according to the motion.
U.S. Bankruptcy Judge John J. Thomas on Monday scheduled a hearing on Schwab's motion for 9:30 a.m. Sept. 17 at the Max Rosenn United States Courthouse, Wilkes-Barre.
Schwab indicated in his motion that he wants to hold the sale at 9 a.m. Nov. 29.
The hospital has been closed since Saint Catherine Hospital of Pennsylvania LLC filed for bankruptcy April 9, 2012. It asked the court to allow it to reorganize, originally filing the petition as a Chapter 11 reorganization case, but Thomas on April 18, 2012, converted the case to a Chapter 7 liquidation.
The state Department of Health has revoked the 107-bed hospital's license and its approximately 150 employees have been left out of work.
Founded as the State Hospital for Injured Persons of the Anthracite Coal Region at Fountain Springs by the state Legislature in 1879, the construction of the original facility began in May 1880 and was completed in 1882.
Schwab already has raised thousands of dollars by selling the contents of the former hospital.
On June 28, Thomas approved a settlement allowing Schwab to sell the building and land as part of the bankruptcy estate. Net proceeds from any sale will be paid to the hospital's creditors and former employees.
In his petition, Schwab indicated he would hire Houser Auctioneers, Schnecksville, to conduct the sale of the real property.