Lawyers for the bankrupt and shuttered Hahnemann University Hospital have reached an agreement with former owner Joel Freedman, his lenders, and other creditors on how proceeds from the eventual sale of the North Broad Street properties will be split.
In a rare bankruptcy occurrence, Hahnemann real estate that was kept out of the 2019 Chapter 11 filing will be consolidated into the bankruptcy estate, making at least some of the proceeds available to repay Freedman’s creditors, who are owed roughly $300 million, according to an estimate in a court filing last year.
The agreement ensures that Freedman — a California businessman who in 2018 borrowed almost all of the money to buy Hahnemann and St. Christopher’s Hospital for Children from Tenet Healthcare Corp. for $170 million — won’t get rich from turning the safety-net hospital into condos, as irate politicians and others thought would happen.
Freedman, through a spokesperson, had no comment.
The extraordinarily complicated agreement describes millions in crisscrossing payments, including a final pension payment of as much as $23.5 million from Tenet for union workers represented by District 1199C, before the sale even happens. The agreement was filed Monday in U.S. Bankruptcy Court for the District of Delaware and awaits a judge’s approval.
Hahnemann’s bankruptcy attorney, Jeffery C. Hampton, in the Philadelphia office of Saul Ewing Arnstein & Lehr, did not respond to an emailed request for additional information about a $5 million payment from Tenet to a Freedman company, Paladin Healthcare.
If the U.S. Bankruptcy Judge Mary F. Walrath approves the 469-page memorandum of understanding, it will end a dozen pieces of litigation in Pennsylvania and Delaware courts that have prevented progress on the sale of five properties that were not in the the bankruptcy because Freedman put the real estate into separate companies from the business of the hospital.
Key players in the agreement are Tenet, which alleged that Freedman owed it tens of millions for information technology and bill collection services after the sale; Harrison Street Real Estate, a Chicago investment firm that lent Freedman $51 million and bought some of the real estate itself; and the remaining Hahneman shell.
Another key lender was Capital One, which provided a $110 million mortgage.
Representatives from Harrison Street, Tenet, and Hahnemann or the committee representing unsecured creditors in the bankruptcy will form a three-member committee to oversee the sale. Al Mezzaroba, a lawyer and a former Pennsylvania Convention Center CEO, will manage the sale.
Proceeds will first be used to pay expenses related to the sale, repay a $5.6 million loan from Hahnemann in March to maintain the properties, and satisfy close to $1.8 million in liens for taxes and water bills on the properties.
The next $20 million will be split evenly between Harrison Street, Tenet, and the bankruptcy estate. Fifty-five percent of anything more than that will go to Harrison Street, with Hahnemann collecting 25% and Tenet collecting 20%.
No one knows how much money the properties will bring.
Likely the most attractive parcels to developers would be the parking lot at the corner of Race and North Broad Streets and Martinelli Park on the northwest corner of Vine and North Broad Streets. Redeveloping the north and south hospital towers would be far more challenging for a buyer because of their condition and other factors.
Joel Freedman was sidelined from sale of Hahnemann University Hospital real estate & Latest News Update
Joel Freedman was sidelined from sale of Hahnemann University Hospital real estate & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Joel Freedman was sidelined from sale of Hahnemann University Hospital real estate & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links