Clawback Actions Initiated in Center City Healthcare, LLC Bankruptcy
June 28, 2021, District of Delaware – Last week, Plaintiffs Center City Healthcare, LLC d/b/a Hahnemann University Hospital (“CCH”) and SCHC Pediatric Associates, LLC (“SCHC,” and together with CCH, collectively, “Plaintiffs”), commenced over 100 adversary actions for avoidance and recovery of transfers under §§ 547, 548 & 550 and to disallow claims under 502(d) of the Bankruptcy Code in the bankruptcy case of Center City Healthcare, LLC d/b/a Hahnemann University Hospital, et al. ( “Debtors”).
Debtor Philadelphia Academic Health System, LLC is the owner of 100% of the membership interests and is the sole manager of each of CCH and Philadelphia Academic Medical Associates, LLC. No trustee has been appointed for any of the Debtors in the Chapter 11 Cases and the Debtors continue to operate their businesses and manage their properties as debtors-in-possession under Sections 1107(a) and 1108 of the Bankruptcy Code.
The largest case in the group is filed against Medline Industries Inc. for a return of $ 4,393,025.00. Some of the other creditors in the group include – Global Neurosciences Institute, Veolia Energy Philadelphia, Inc., McKesson Medical Surgical, Inc., Holland Square Group, LLC, etc. The claim amount ranges from $25K to $4M and the Plaintiffs seek to recover about $21M from about 109 defendants.
Center City Healthcare, LLC and thirteen of its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code in June 2019. The Debtors continue to operate their businesses and manage their properties as debtors-in-possession. This website was created to assist the Debtors in providing access to information for creditors, as well as to receive comments from such creditors.
Honorable Judge Mary F. Walrath is overseeing the Debtors case. The Plaintiffs are represented by Saul Ewing Arnstein & Lehr, LLP. The Debtors cases are jointly administered under Case Number – 19-11466 (MFW) in the United States Bankruptcy Court for the District of Delaware.