Teetering West Penn Allegheny Health System countersued crosstown Pittsburgh insurer Highmark Inc. over the breakup of their proposed $475 million affiliation agreement.

In Tuesday’s filing in the Allegheny County Court of Common Pleas, West Penn, whose roughly $737 million of bond debt is one of the largest junk-level issuances in the municipal market, said Blue Cross Blue Shield insurer Highmark’s “unrelenting bankruptcy and debt restructuring demands” caused a breach of the agreement, announced last fall.

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