A hearing on the sale of Mercy Iowa City was postponed on Friday after a motion was filed by Mercy to push the hearing to a later date because of ongoing, unresolved negotiations over the sale of the hospital.

Thad J. Collins, chief judge of the U.S. Bankruptcy Court of the Northern District of Iowa, approved the motion on Friday and has yet to set a new date for the hearing.

Mercy started the auction of their assets last Wednesday after receiving a competing bid from an unnamed buyer that increased the University of Iowa’s “stalking horse bid” that set the minimum competing bid at $20.9 million.

However, almost a week later, the auction remains unresolved due to closed-door negotiations between Mercy, the UI, a committee of unsecured creditors, and the unnamed bidder.

A court filing by lawyers representing Mercy Iowa City stated that counsel for the committee of creditors and bondholders approved the motion. At the time the motion was filed, Mercy was unable to contact the UI’s counsel, according to court documents.