| Medical Properties Trust announced that it has reached agreement to settle all of the claims asserted by Stealth, L.P. in previously disclosed litigation concerning the termination of leases of the Houston Town and Country Hospital and medical office building in October 2006, with the exception of a single contract claim for which Memorial Hermann Healthcare System has agreed to provide indemnification. Claims separately asserted against MPT by six of Stealth L.P.'s limited partners are not affected by the settlement. The settlement announced today does not affect Stealth's claim that an MPT affiliate was obligated to assume certain guarantees of debt provided by limited partners of Stealth. While Stealth has asserted actual damages of approximately $4M related to this claim, Memorial Hermann Healthcare System, the largest hospital system in Texas, is indemnifying MPT for defense costs and any costs of settlement or judgment related to this claim. In January 2007, Memorial Hermann purchased the hospital and medical office building in a transaction that resulted in a $4.1M gain for MPT. In addition, in March 2009 MPT received insurance proceeds related to the litigation in the amount of $3M. :theflyonthewall.com |
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