You might want to look at this PR (July 16 07)this may be clearing the way for some movement.
IHHI sued Shah and OCPIN last May for breach of fiduciary duty, among other things. IHHI's lawsuit contends that Shah and OCPIN held up the critically needed refinancing to force IHHI to make disputed lease payments to a third company owned by an OCPIN affiliate and others. Judge Gregory H. Lewis of the Orange County Superior Court appointed Jameson after rejecting a competing request by Shah and OCPIN to force IHHI's management to call a special shareholders' meeting. Shah and OCPIN wanted the special shareholders' meeting to elect their own director. Shah and OCPIN opposed Judge Lewis' appointment of a provisional director.
In denying Shah and OCPIN's request, and in appointing Judge Jameson to serve as a "verifiably independent" provisional director, Judge Lewis explained he was acting as "the conscience of the community" to ensure continued operation of four Orange County hospitals owned and operated by IHHI. "Judge Lewis acted courageously," remarked IHHI attorney David A. Robinson of the Irvine-based Enterprise Counsel Group. "Although acknowledging the law normally would entitle Shah and OCPIN to hold a meeting to elect their own director, Judge Lewis recognized the conflicting financial interests at work and acted to prevent a potential public healthcare disaster. He agreed with IHHI's management that IHHI's Board should be controlled by individuals with only the interests of four hospitals and the public they serve in mind."
"This is precisely the result we were looking for when we filed the lawsuit against Shah and OCPIN," said IHHI's President Larry Anderson. "Shah's self-serving tactics have put four hospitals at risk. They have caused IHHI to default on its existing loan obligations. We look to Judge Jameson to work with IHHI's other independent Board members to implement steps necessary to ensure IHHI's future stability and success". Per IHHI CEO, Bruce Mogel: "We praise the judge's courage in standing up for healthcare in Orange County. This decision will provide much needed stability benefiting the healthcare delivery system in Orange County and surrounding areas."
