Crozer-Keystone's owner failed to put disputed $21.5M into escrow
The dispute between Crozer-Keystone Community Foundation and Prospect Medical centers on how much Prospect had to pay for the net working it capital it received when the deal closed last summer. Prospect has paid $32.93 million, The foundation claims it is owed an additional $21.5 million including interest.
Crozer-Keystone Health System's owner, Prospect Medical Holdings Inc., failed to put $21.5 million into an escrow account by Aug. 10, as required by a June 22 court order, according to legal filings in a dispute over the final price for the sale of Crozer last year.
The deal was valued at $300 million, but most of that was for debt and other liabilities.
The dispute between Crozer-Keystone Community Foundation and Prospect Medical centers on how much Prospect had to pay for the net working capital it received when the deal closed last summer. Prospect has paid $32.93 million. The foundation claims it is owed an additional $21.5 million including interest.
During a hearing in June, the parties agreed to hire accounting firm Baker Tilly to figure out how much Prospect owes. That agreement also called for Prospect to deposit $21.5 million in a TD Bank escrow account.
Because Prospect failed to do so, attorneys for the foundation, Rocco P. Imperatrice III and Patricia L. Rizzo, of Imperatrice, Amarant & Bell P.C., on Monday asked the Orphans' Court in Delaware County to order Prospect to pay the foundation $100,000 a day until it fulfills the June order. The petition also asked the court to appoint a conservator to oversee Crozer's finances.
The latest filings were first reported by the Delaware County Daily Times.