Sound Shore wins court approval of Dasny and PBGC claim stipulations

By Caroline Salls

Pittsburgh, May 20 - Sound Shore Medical Center of Westchester's official committee of unsecured creditors received court approval of a stipulation that resolves an $11.55 million claim filed by the Dormitory Authority of the State of New York (Dasny), according to a May 19 filing with the U.S. Bankruptcy Court for the Southern District 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.

Under the stipulation, 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, the motion said.

In addition, the committee obtained approval of a stipulation allowing for the resolution of disputed claims made by the Pension Benefit Guaranty Corp.

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

The committee disputed some claim amounts, 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 amounts of $7.18 million and $2.99 million.

Under the stipulation, the remaining disputed PBGC claims will 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.

Also, the PBGC will have allowed or reduced general unsecured claims in the amounts of $1.49 million, $11.71 million and $3.42 million.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.