Sound Shore committee seeks stipulation to resolve disputed claims

By Kali Hays

New York, April 17 - Sound Shore Medical Center of Westchester's committee of unsecured creditors asked a court to authorize a stipulation to the company's plan allowing for the resolution certain disputed claims made by the Pension Benefit Guaranty Corp., according to a Wednesday motion with the U.S. Bankruptcy Court for the Southern District of New York.

In September 2013, PBGC filed seven claims against the company totaling about $43.55 million.

Certain amounts of the claims have been disputed by the committee, particularly one in the amount of $1.04 million regarding unpaid minimum funding contributions from the company, according to the motion.

After the sale of Sound Shore's assets closed in November 2013, PBGC received two payments on secured claims from the company in the amount of $7.18 million and $2.99 million.

Under the stipulation, the remaining disputed PBGC claims would be resolved after an additional $346,336 is paid to PBGC, which will leave $808,119 from the remaining escrow from Sound Shore's asset sale to be received by the company.

The committee and PBGC "wish to resolve these disputes without litigation" and the committee said that it is believes the stipulation "represents a positive result for the debtors' estates."

A hearing is scheduled for May 20.

Sound Shore, a New Rochelle, N.Y., medical center, filed Chapter 11 bankruptcy on May 29, 2013. Its Chapter 11 case number is 13-22840.

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