Liberty Medical settles $12 million of claims with allowed stipulation

By Kali Hays

New York, Aug. 19 – Liberty Medical Supply, Inc. obtained court approval of a stipulation resolving $12.13 million of claims made by unsecured creditors LifeScan, Inc. and Animas Corp., according to a Tuesday order with the U.S. Bankruptcy Court for the District of Delaware.

In 2013 LifeScan filed two proofs of claim against Liberty Medical in the amount of $6.32 million and $5.5 million for unpaid invoices and Animas filed two proofs of claim in the amount of $124,072 and $182,299, also for unpaid invoices.

Liberty Medical objected to the claims in March, but after negotiations between the parties, agreed to allow LifeScan a general unsecured claim in the amount of $789,158 and an administrative claim in the amount of $5.5 million, while Animas will be allowed a general unsecured claim of $124,072 and an administrative claim of $182,299.

The claims will be treated in accordance with Liberty Medical’s confirmed liquidation plan.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15, 2013. The Chapter 11 case number is 13-10262.

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