FORM 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 19, 2009
MEDICAL PROPERTIES TRUST, INC.
(Exact Name of Registrant as Specified in Charter)
Commission File Number 001-32559
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Maryland
(State or other jurisdiction
of incorporation or organization )
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20-0191742
(I. R. S. Employer
Identification No.) |
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1000 Urban Center Drive, Suite 501
Birmingham, AL
(Address of principal executive offices)
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35242
(Zip Code) |
Registrants telephone number, including area code
(205) 969-3755
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the Registrant under any of the following provisions:
o Written communications pursuant to Rule425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
The Company 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. On November 19, 2009, the Registrant issued the press release
attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in Item 7.01 shall not be deemed filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific
reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit Number |
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Description |
99.1
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Press release dated November 19, 2009 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MEDICAL PROPERTIES TRUST, INC.
(Registrant)
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By: |
/s/ R. Steven Hamner
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R. Steven Hamner |
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Executive Vice President
and Chief Financial Officer
(Principal Financial and Accounting Officer) |
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Date: November 20, 2009
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INDEX TO EXHIBITS
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Exhibit Number |
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Description |
99.1
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Press release dated November 19, 2009 |
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exv99w1
Exhibit 99.1
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Contact: |
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R. Steven Hamner
EVP & Chief Financial Officer
Medical Properties Trust
(205) 969-3755
shamner@medicalpropertiestrust.com |
MEDICAL PROPERTIES TRUST, INC. IN SETTLEMENT OF LITIGATION
Birmingham, Ala., November 19, 2009 Medical Properties Trust, Inc. (MPT) (NYSE: MPW)
today 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.
Stealth, L.P. was seeking approximately $330 million for tort claims that we have now settled
for a single payment of $1.7 million, said Edward K. Aldag, Jr., MPTs Chairman, President and
Chief Executive. In addition, MPT paid $1.0 million to settle certain contract claims asserted by
Stealth, L.P. MPT continues to vigorously deny any liability at all and vigorously deny that
Stealth suffered any damages as a result of any conduct of MPT. MPT has previously estimated that
legal fees to defend the claims in a jury trial scheduled to commence January 4, 2010 may have
exceeded $2.0 million. The decision by MPT to pay anything to Stealth in this matter was a
difficult one because we had no responsibility for Stealths failure to operate the hospital
profitably, continued Aldag. However, in order to avoid the significant defense costs and time
commitment our executive team would have made to a four month trial, we elected to pay an amount
comparable to our estimated costs to continue to defend the claims through trial.
The settlement announced today does not affect Stealths 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 $4.0 million 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 $4.1
million gain for MPT. In addition, in March 2009 MPT received insurance proceeds related to the
litigation in the amount of $3.0 million.
Also not affected by the settlement with Stealth are certain contract and tort claims asserted
by six of Stealths limited partners. As part of the settlement, however, Stealth has indemnified
MPT for any judgment amount and certain defense costs that MPT may incur related to these claims.
MPT continues to vigorously deny any liability and intends to continue vigorously defending against
such claims, and believes that any future costs related to them will not be material.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate
investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring
and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation
hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery
centers and other single-discipline healthcare facilities, such as heart hospitals and orthopedic
hospitals.
The statements in this press release that are forward looking are based on current expectations and
actual results or future events may differ materially. Words such as expects, believes,
anticipates, intends, will, should and variations of such words and similar expressions are
intended to identify such forward-looking statements, which include, but are not limited to, the
outcome related to litigation, including the costs and time devoted to litigation, the potential
diversion of management attention during litigation, the possibility of adverse results from
litigation and the indemnity from other parties. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual results of the Company or
future events to differ materially from those expressed in or underlying such forward-looking
statements, including without limitation: national and economic, business, real estate and other
market conditions; the competitive environment in which the Company operates; the execution of the
Companys business plan; financing risks; the Companys ability to maintain its status as a REIT
for federal income tax purposes; acquisition and development risks; potential environmental and
other liabilities; and other factors affecting the real estate industry generally or the healthcare
real estate in particular. For further discussion of the facts that could affect outcomes, please
refer to the Risk Factors section of the Companys Form 10-K for the year ended December 31, 2008
as updated by our subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings.
Except as otherwise required by the federal securities laws, the Company undertakes no obligation
to update the information in this press release.
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