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Nursing-home operator Orianna Health Systems won final court approval of its chapter 11 plan after reaching a settlement that ends a months-long legal battle with its landlord, WSJ Pro Bankruptcy reported. During a hearing yesterday at the U.S. Bankruptcy Court in Dallas, Judge Harlin DeWayne Hale said that he was ready to sign off on the plan, which will keep Orianna alive solely for the purpose of winding down what remains of the business and distributing its assets to creditors. Orianna, once the operator of more than 40 nursing homes in seven states, filed for bankruptcy in March with a prearranged restructuring deal that was initially supported by its landlord. The case was supposed to be opened and closed quickly, with a final hearing on the proposed plan originally set for July. But a clash over how much of the plan’s expenses would be borne by Omega Healthcare Investors Inc., the publicly traded real-estate investment trust that is Orianna’s landlord, caused the deal to fall apart, and the case devolved into a series of contentious courtroom conflicts. Under the settlement announced yesterday — a deal that resolves a number of outstanding disputes among Omega, Orianna and its unsecured creditors — Omega agreed to support the chapter 11 plan and will provide $7.4 million to help pay unsecured creditors. Lawyers for Orianna and its unsecured creditors have also each agreed to waive $300,000 in legal fees. Read more. 

Examine how current challenges facing the health care industry will lead to future opportunities. Don't miss ABI's “Disruption, Consolidation and Innovation in the Health Care Industry” Program scheduled for January 17 at Georgetown University Law Center. Register here. 

Shopko could file for bankruptcy protection from creditors as soon as next week, according to a pharmaceutical drug supplier that says the retailer owes it $67 million, the Green Bay (Wis.) Press Gazette. Jeff Garfinkle, an attorney for San Francisco-based McKesson Corp., said during a hearing yesterday in Brown County, Wis., Circuit Court, that Shopko is expected to file for bankruptcy on Jan. 15. The companies were in court for a hearing on McKesson's request for a restraining order to keep Shopko from selling medications it supplied the Ashwaubenon-based retailer. McKesson claims it has provided Shopko with $67 million in drugs since Nov. 11, but has not been paid since early December. McKesson's lawyers argued the company's ability to recoup that debt would be impaired if the Ashwaubenon-based retailer seeks protection from creditors under chapter 11. Read more. 

Examine how current challenges facing the health care industry will lead to future opportunities. Don't miss ABI's “Disruption, Consolidation and Innovation in the Health Care Industry” Program scheduled for January 17 at Georgetown University Law Center. Register here. 

Cardiac monitor developer Angel Medical Systems has filed for chapter 11 protection, MassDevice.com reported. In its petition forms, the Eatontown, N.J.-based company lists the BioInfo Accelerator Fund as its largest creditor, owing it approximately $43 million. The owed amounts are for a combination of $20.6 million in 2012 notes, $20.4 million in 2014 notes and approximately $2 million in 2016 notes, according to the files. Angel Medical Systems filed in Delaware bankruptcy court seeking approval for its bankruptcy plan, which includes the issuance of promissory notes for up to $2.5 million in post-petition financing. A total of $2 million of the $2.5 million will automatically convert into Series A preferred shares at a price equal to 78 percent of the original purchase price, according to court documents. Angel Medical systems developed and won FDA clearance for its AngelMed implantable cardiac monitor system, an implantable cardiac monitor designed to alert the patients with an external alarm device. The device won FDA indications for use in patients who have had prior acute coronary syndrome events including myocardial infarctions or unstable angina, and remain at a high risk for recurrent ACS events. Read more. 

Examine how current challenges facing the health care industry will lead to future opportunities. Don't miss ABI's “Disruption, Consolidation and Innovation in the Health Care Industry” Program scheduled for January 17 at Georgetown University Law Center. Register here. 

A hospital is changing hands in northern Mississippi after its previous owner filed for bankruptcy, the Associated Press reported. Gilmore Memorial Hospital in Amory became part of North Mississippi Health Services on Tuesday. The new name is North Mississippi Medical Center Gilmore-Amory. Curae Health sold Gilmore to the Tupelo-based system, finalizing the deal on Friday. Officials previously said that North Mississippi Health Services expected to pay $14.2 million to acquire the land, plant, property and equipment. It was to assume a $3.3 million lease on the medical office building. Read more.
https://www.usnews.com/news/best-states/mississippi/articles/2019-01-02…

Don't miss ABI's “Disruption, Consolidation and Innovation in the Health Care Industry” Program scheduled for January 17 at Georgetown University Law Center, where the discussion will focus on how current challenges facing the health care industry will lead to future opportunities. Register here.
https://www.abi.org/events/disruption-consolidation-and-innovation-in-t…