Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Foundation Healthcare DS Approved, Plan Confirmed

The U.S. Bankruptcy Court approved Foundation Healthcare's Disclosure Statement and confirmed the Company's Chapter 11 Plan of Liquidation. The Court conditionally approved the Disclosure Statement on August 8, 2017. As previously reported, "The Plan provides for the liquidation of the Debtors' remaining assets, including the pursuit of Causes of Action, and the distribution of the net proceeds to holders of Allowed Claims. The execution and consummation of the Plan will be facilitated through the Plan Administrator....The Plan Administrator shall be authorized pursuant to the terms of the Plan to act on behalf of the Debtors to administer and liquidate, as appropriate, the Debtors' assets, investigate and pursue Causes of Action, and make Distributions pursuant to the terms of the Plan. Though the Plan is styled a 'Joint Plan,' the Plan as drafted consists of two (2) separate Plans--one for each Debtor. The Cases are not substantively consolidated and the liquidation of assets and treatment of Claims for each Debtor will be separately maintained and administered….Each holder of an Allowed Administrative Expense Claim other than the DIP Administrative Claim and Professional Claims, including any Post-Petition Tax Claim, shall receive 100% of the unpaid Allowed amount of such Administrative Expense Claim in Cash in the ordinary course of business or as soon as reasonably practicable after the later of (a) the Effective Date, (b) payment in full of the DIP Administrative Claim, (c) the date on which such Administrative Expense Claim becomes Allowed, or (d) such date as is mutually agreed upon by the applicable Debtor or Liquidating Debtor and the Holder of such Allowed Administrative Expense Claim." This surgical hospital operator filed for Chapter 11 protection on June 21, 2017, listing $120 million in pre-petition assets. Visit BankruptcyData for the detailed Plan Summary of Foundation Healthcare's Chapter 11 Plan of Liquidation.

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