Sumner Regional gets court OK of settlement to allow sale to proceed

By Caroline Salls

Pittsburgh, Aug. 18 - Sumner Regional Health Systems, Inc. received court approval of a settlement agreement that will allow the company's asset sale to proceed, according to a Tuesday filing with the U.S. Bankruptcy Court for the Middle District of Tennessee.

The settlement gives bond trustee Wells Fargo Bank NA a $155 million allowed secured claim, less any principal payments made on Sumner's 2008 bonds since the bankruptcy filing.

Also, Sumner County, Tenn., will receive $15 million of the sale proceeds under the settlement, and the company will receive $15 million, the motion said.

Sumner County had appealed the June 24 court order approving Sumner Regional's $154.11 million sale of substantially all of its assets to LifePoint Hospitals, Inc.

Sumner Regional, a Tennessee health-care provider, filed for bankruptcy on April 30. Its Chapter 11 case number is 10-04766.

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