Corporate,
Bankruptcy
Jan. 13, 2020
Bankruptcy court rejects material adverse effect claim
A recent case demonstrates that a buyer faces a heavy burden and must make a strong showing to invoke a material adverse effect exception to its obligation to close a purchase.
David S. Kupetz
Shareholder
SulmeyerKupetz PC
333 S Grand Avenue, Suite 3400
Los Angeles , CA 90071-1406
Fax: (213) 629-4520
Email: dkupetz@sulmeyerlaw.com
UC Hastings College of the Law
David is an expert in bankruptcy, business reorganization, restructuring, assignments for the benefit of creditors, and other insolvency solutions.
Verity Health System of California, Inc., and its affiliated entities (VHS) operated an integrated nonprofit health care system, including five hospitals, with approximately 1,680 inpatient beds, six active emergency rooms, a trauma center, and 11 medical office buildings. Suffering severe financial distress, VHS commenced a Chapter 11 bankruptcy reorganization case in August, 2018. In connection with its bankruptcy case, the debtor initiated as sale process. Ultimate...
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