Verity Health System wins approval of settlement with contract party

By Caroline Salls

Pittsburgh, May 29 – Verity Health System of California, Inc. received court approval of a settlement reached with Premier, Inc., according to an order filed Wednesday in the U.S. Bankruptcy Court for the Central District of California.

Verity said the settlement deals with the assumption of some of Premier’s pre-bankruptcy executory contracts and the cure of Premier’s pre-bankruptcy claims related to the Verity debtors’ and Premier’s ongoing business relationship.

The company said the Verity debtors and Premier are parties to seven different contracts.

Verity said the settlement allows it to recover value from the current and future disposition of some limited partnership interests that may total $7.4 million before payment of cure costs.

According to the motion, the settlement nets the payments to be made to Premier as cure for the assumption of certain agreements against the value to be received by the Verity debtors for the monetization of Verity Health System’s limited partner unit interests in Premier Healthcare Alliance, LP through their exchange or sale.

The agreement allows the parties to end their relationship, the motion said.

Verity is a Los Angeles-based nonprofit health care system. The company filed bankruptcy on Aug. 31, 2018 under Chapter 11 case number 18-20151.

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