Sound Shore committee seeks OK of $8.15 million claim resolution

By Kali Hays

New York, April 11 - Sound Shore Medical Center of Westchester's official committee of unsecured creditors asked a court to allow a plan stipulation resolving an $11.55 million claim by the Dormitory Authority of the State of New York.

Dasny filed the claim against the medical center in September 2013 and claimed that at least $8.15 million of the claim is secured, according to the motion.

The stipulation was agreed to in November 2013 and resolves the Dasny claim as the medical center agreed to pay the $8.15 million secured claim upon entry of a sale order.

If the stipulation is approved, Sound Shore will receive $1.55 million from escrow generated from the approved sale, while the remainder of the funds, including any accrued interest, will be paid to Dasny in exchange for the release of all claims against the medical center, according to the motion.

The committee is asking for approval of the stipulation to avoid litigation expenses and the chance that the estate could "receive nothing if the litigation were unsuccessful."

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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