Gazette Daily News Briefing, October 5
This is Stephen Schmidt from the Gazette Digital News Desk, and I’m here with your update for October 5, 2023.
According to the National Weather Service there will be a slight chance of showers between 2 p.m. and 4 p.m. Thursday. There will be increasing clouds during the day in the Cedar Rapids area, with a high near 76 degrees.
There was supposed to be an auction for Mercy Iowa City in Chicago on Wednesday. At least that appeared to be the plan for most of the day.
Then, without explanation, Mercy Iowa City at 6:30 p.m. on Wednesday evening announced the historic auction for its assets as part Chapter 11 bankruptcy proceedings would be continued “to a later date.”
The decision, according to a court filing made public just after 7:30 p.m., was done in “consultation with the official committee of unsecured creditors” — a group formed to represent the more than 400 individuals and companies that Mercy owes more than $17 million.
Although the continuance did not set a new auction date, Wednesday evening’s court filing indicated it would happen before the sale hearing, set for Oct. 10.
Mercy spokeswoman Eileen Wixted said Wednesday evening the auction process was delayed “so the parties can continue negotiations.”
As part of Mercy’s Aug. 7 bankruptcy petition, it announced the University of Iowa was offering a “stalking horse” bid for substantially all its assets of $20 million.
However, that was nowhere near paying off the $63 million in secured debt Mercy Iowa City has to bondholders, including its largest Preston Hollow Community Capital.There were several objections to Mercy accepting the university’s bid, and further negotiations have led things to where they are now.
A Linn County woman is charged with vehicular homicide in the death of a motorcyclist Tuesday evening.
Debra Trimble, 60, collided head-on with the motorcyclist, Chad Craig, 48, of Cedar Rapids, while Trimble was attempting to pass another car in a no-passing zone on Cottage Grove Avenue, near Highlands Court SE.
Trimble was driving north in a Pontiac Vibe just after 7 p.m. when she tired to pass the other car while going uphill on a curve.
A news release from the Linn County Sheriff’s Office states Trimble is from Marion, but a criminal complaint lists her home address in Cedar Rapids.
Craig was pronounced dead at the scene. Trimble has been charged with homicide by vehicle, operating under the influence and unsafe passing.
A large fire broke out in a homeless encampment near South Gilbert Street in Iowa City Wednesday afternoon.
The Iowa City Fire Department quickly extinguished the fire and no injuries have been reported. None of the nearby buildings were damaged, according to Fire Chief Scott Lyon, who spoke with The Gazette at the scene.
The cause of the fire remains under investigation.
