Sale of Hillsboro clinic building canceled
A sheriff’s sale of a building that formerly housed Herington Hospital’s clinic in Hillsboro was abruptly canceled last week for reasons not outlined in the court order canceling it.
The sheriff’s sale was scheduled for 2 p.m. Thursday. It was to have been part of a $1.9 million lawsuit filed Oct. 9 by Emprise Bank against Herington Hospital.
The bank’s lawyer canceled the sale at 8:48 a.m. Thursday.
A court document filed in the case reserved the right to reschedule it later.
The hospital’s parent company, Amberwell Atchison Association, answered the bank’s petition Oct. 21. Amberwell contended it had an interest in the property because Amberwell had extended a $500,000 loan to Herington Hospital in June 2022. That loan was secured by a lien on Herington Hospital property.
Emprise’s loans to the hospital, made in 2021 and 2022, were secured by a lien on the mortgage.
On Nov. 27, the court issued garnishment orders for Herington Hospital bank accounts.
The bank obtained a default judgment Dec. 4 and was granted an order of sale for the property Dec. 27.
Neither the bank’s lawyer, Karl Swartz, nor Amberwell’s lawyer, Andrew Marino, both of Wichita, returned calls seeking to find out why the sale was canceled.