Center City Healthcare, LLC

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Center City Healthcare, LLC

Adversary Proceeding Publication

Philadelphia Academic Health System, LLC is the direct or indirect parent company of Center City Healthcare, LLC (doing business as Hahnemann University Hospital), a 496-bed tertiary care academic medical center in Center City, Philadelphia.

Hahnemann University Hospital was founded in 1848. It was fully accredited and historically provided a range of specialty services, including Level I adult trauma, among other inpatient and outpatient services. Hahnemann University Hospital was also the primary teaching hospital for Drexel University (doing business as Drexel University College of Medicine).

Status of the Bankruptcy Case

On June 30, 2019 (the "Petition Date"), Center City Healthcare, LLC and thirteen affiliated debtors filed voluntary petitions for relief under chapter 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, jointly administered under Case No. 19-11466 (MFW).

On July 15, 20219, the United States Trustee appointed the Official Committee of Unsecured Creditors of Center City Healthcare, LLC, et al.

By orders dated September 4, 2019, the Bankruptcy Court approved the Creditors'Committee's applications to retain the law firms of Sills, Cummis & Gross P.C. and Fox Rothschild LLP as its counsel. In addition, on September 4, 2019, the Bankruptcy Court entered an order approving the Creditors' Committee's application to retain Berkeley Research Group, LLC as its financial advisor.

Honorable Judge Mary F. Walrath is presiding over the bankruptcy case and the adversary proceeding cases.

Bankruptcy clawback actions by the trustee

Between June 23, 2021, and June 28, 2021, Center City Healthcare, LLC filed 110 adversary proceedings seeking to avoid and recover preferential transfers of property that occurred during the ninety (90) day period before the commencement of the Debtor's bankruptcy filing date and as alleged fraudulent transfers.

The Defendants are required to file a response to the Complaint against them within thirty (30) days after the summonses are issued.

Snapshot of the adversary proceedings in the group

The claim amounts against the defendants in the group range from $25,122.00 to $4,393,025.00.

The ten largest cases in the recently filed group of cases based on claim amount are as follows:

Snapshot of the adversary proceedings in the group

Important dates and headlines

  • July 1, 2019, a Voluntary bankruptcy petition was filed by the Debtors.

  • August 5, 2020 Deadline for filing proofs of claims

Upcoming events:

Summons must be issued.

Answer deadline within 30 days of Summons issue date

Pre-trial conference

Initial disclosures

Our Proposed Strategy

Typically, once we are retained as counsel, we first prepare an answer or response to the complaint, such as a motion to dismiss (requesting the complaint to be dismissed as it lacks legal sufficiency to go to trial) to file with the court before the filing deadline.

Because settlement in the early stages of litigation is generally encouraged to mitigate litigation costs, we prepare and draft a Position Statement for settlement negotiations. This Position Statement may be used for not only negotiation purposes but also, if required, it may also be converted into a formal pleading.

The Law Office of Magdalena Zalewski is experienced in Bankruptcy litigation and can help you defend yourself against Centre City Healthcare LLC.

Please visit our website for more information and to set up a free consultation.

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