World Health trustee reaches settlement deal on $817,866 in claims

By Kali Hays

New York, April 30 – World Health Alternatives, Inc. Chapter 7 trustee George L. Miller is seeking court approval of a settlement with Great-West Life & Annuity Insurance Co. and the U.S. Department of Labor resolving $817,866 in claims, according to a Thursday motion with the U.S. Bankruptcy Court for the District of Delaware.

Prior to World Health filing for bankruptcy, Great-West serviced some employee welfare benefit plans and holds an allowed administrative claim against the company totaling $70,706. The Department of Labor filed several claims against World Health related to unpaid pension plans, medical claims and administrative expenses totaling $747,160.

After the trustee filed an adversary complaint against the claimant parties in January in order to obtain documents related to the claim amounts, the parties entered into negotiations to resolve the claims, according to the motion.

Under the proposed settlement, Great-West will withdraw its claim in full, the Department of Labor will have an allowed general unsecured claim totaling $450,000 and the trustee will withdraw the adversary complaint.

A hearing to consider the settlement is set for June 8.

World Health Alternatives was a Pittsburgh-based supplier of staffing services for the medical industry that filed for bankruptcy on Feb. 20, 2006. The Chapter 7 case number is 06-10166.

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