IN RE INTEGRATED HEALTH SERVICES, INC.

Bankruptcy No. 00-389(MFW), C.A. Nos. 04-1262(GMS), 05-376(GMS).

375 B.R. 730 (2007)

In re INTEGRATED HEALTH SERVICES, INC., et al., Debtors. Indemnity Insurance Company of North America, Plaintiff, v. Integrated Health Services, Inc., and ABE. Briarwood Corp., Defendants. IHS Liquidating LLC, Plaintiff, v. Ace Indemnity Insurance Company, Defendants.

United States District Court, D. Delaware.

September 12, 2007.


Attorney(s) appearing for the Case

Alfred Villoch, III, Buchanan Ingersoll PC, Edmon L. Morton, Joel A. Waite, James L. Patton, Joseph M. Barry, Maureen D. Luke, Robert S. Brady, Sharon M. Zieg, Young, Conaway, Stargatt & Taylor, Francis G.X. Pileggi, Fox Rothschild LLP, Ian Connor Bifferato, Bifferato Gentilotti LLC, J. Kate Stickles, Saul, Ewing LLP, Kevin J. Connors; Marshall Dennehey Warner Coleman, Megan Nancy Harper, Landis Rath & Cobb, Michael G. Busenkell, Morris, Nichols, Arsht & Tunnell, Todd Charles Schiltz, Esq., Wolf, Block, Schorr & Solis-Cohen, William Pierce Bowden, Ashby & Geddes, William E. Chipman, Jr., Edwards Angell Palmer & Dodge, Wilmington, DE, Arthur Steinberg, New York, NY, for Integrated Health Services, Inc.

Christopher A. Ward, The Bayard Firm, GianClaudio Finizio, Pepper Hamilton LLP, Wilmington, DE, for Official Committee of Unsecured Creditors of Premiere Associates, Inc. and its Subsidiaries.

Charlene D. Davis, The Bayard Firm, Wilmington, DE, for Official Committee of Unsecured Creditors of Premiere Associates, Inc. and its Subsidiaries and Official Commitee of Unsecured Creditors of Integrated Health Services, Inc. et al.

Denise Seastone Kraft, Edwards Angell Palmer & Dodge LLP, Stephanie Ann Fox, Klehr Harrison Harvey Branzburg & Ellers, Steven K. Kortanek, Womble Carlyle Sandridge & Rice, PLLC, Wilmington, DE, Jennifer Lee Scoliard, Philadelphia, PA, for Official Commitee of Unsecured Creditors of Integrated Health Services, Inc. et al.

Anthony M. Saccullo, Fox Rothschild LLP, Wilmington, DE, for Official Committee of Unsecured Creditors of Premiere Associates, Inc. and its Subsidiaries and Premiere Committee.


MEMORANDUM

GREGORY M. SLEET, Chief Judge.

I. INTRODUCTION

On May 6, 2005, IHS Liquidating, LLC (the "Liquidating LLC") commenced an adversary proceeding in the United States Bankruptcy Court for the District of Delaware against Indemnity Insurance Company of North America ("IICNA") seeking a determination of whether coverage provided to Integrated Health Services ("IHS," of which the...

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