HearUSA has filed an action against Siemens Hearing Instruments, in the Supreme Court of the State of New York, to seek adjudication of a dispute between the parties.
The action concerns a claim by Siemens for an additional loan prepayment under the credit agreement of $2.3m arising from HearUSA’s sale of its Canadian assets in 2009.
HearUSA chairman and chief executive officer Stephen Hansbrough said despite efforts to avoid litigation, they believe they had no alternative other than to file suit and recognize that the public statements made by Siemens in its Schedule 13D filing about their relationship and HearUSA’s financial condition have been troubling to stockholders, employees, patients and contracting parties.
"We are current in our regular payments to Siemens under the supply agreement and credit agreement. We intend to continue to abide by our agreements with Siemens," Hansbrough said.
"We regret that our long-term partner has chosen these courses of action, forcing us to turn to the courts for resolution of our dispute concerning the 2009 sale of assets. The dispute relates to a special prepayment obligation under the credit agreement which we believe has been satisfied. We will vigorously pursue our rights under the credit agreement."