St. Margaret’s Health – Peru is in post-confirmation liquidation under a plan that became effective on October 18, 2024. The creditor trustee’s proposed settlement with MEDITECH is scheduled for a November 18, 2026 hearing; it would provide $125,000 to the trust and resolve disputed claims, subject to court approval. Settlement motion Dkt. 581

St. Margaret’s Health – Peru is in post-confirmation liquidation under a joint plan confirmed on June 28, 2024 and effective October 18, 2024. The plan provides for a creditor trust to liquidate remaining assets and pursue claims, and a separate trust to address self-insured liability claims. General unsecured creditors are to receive pro rata distributions from remaining creditor trust assets. Confirmation order Dkt. 409; effective-date notice Dkt. 461; disclosure statement Dkt. 325.

Peru and affiliate St. Margaret’s Health – Spring Valley filed for Chapter 11 on August 31, 2023, and their cases were jointly administered. The disclosure statement attributes their financial decline to a failed affiliation transaction, pandemic-related pressure on patient volumes and labor costs, a 2021 ransomware attack, and billing disruption following an electronic medical records implementation. Peru Hospital closed in January 2023 after emergency physician services ended. Joint-administration order Dkt. 25; disclosure statement Dkt. 325.

The creditor trustee continues to administer assets and claims. In a report filed November 2, 2026, the trustee reported $147,620 of cash disbursements during the quarter ended September 30 and $2,024,545 since the plan’s effective date for Peru. Post-confirmation report Dkt. 583.

The trustee seeks approval of a settlement with Medical Information Technology, Inc. Under the proposed agreement, MEDITECH would pay the trust $125,000, waive an approximately $175,296 postpetition administrative claim, and receive an allowed $2,204,192.64 general unsecured claim against Peru; the parties would also exchange releases. The settlement remains subject to court approval, with a hearing scheduled for November 18, 2026. Settlement motion Dkt. 581.