Hahnemann University Hospital seeks OK of settlement with Medtronic

By Sarah Lizee

Olympia, Wash., April 3 – Center City Healthcare, LLC, which does business as Hahnemann University Hospital, is seeking approval of a settlement of preference claims against Medtronic USA, Inc. and Medtronic Xomed, Inc., according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

On April 13, 2022, the debtors filed a complaint against Medtronic to avoid and recover transfers made within 90 days before the petition date.

Following negotiations between the parties, the debtors and Medtronic agreed to a settlement of the preference claims.

Under the settlement, the debtors’ demand against Medtronic in the amount of $1.38 million has been settled and resolved, subject to court approval, for $525,000.

Medtronic USA will have an allowed general unsecured claim against debtor Center City Healthcare in the amount of $870,293.69, and Medtronic Xomed will have an allowed general unsecured claim against debtor St. Christopher’s Healthcare, LLC in the amount of $75,402.56.

Except for the allowed claims arising out of the settlement agreement, Medtronic will waive and release any claims against the debtors.

Center City is a Philadelphia-based hospital operator. The company filed bankruptcy on June 30, 2019 under Chapter 11 case number 19-11466.

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