Amsterdam at Harborside Chapter 11 plan effective as of Sept. 8

By Sarah Lizee

Olympia, Wash., Sept. 9 – Amsterdam House Continuing Care Retirement Community, Inc., which does business as the Amsterdam at Harborside, had its pre-negotiated Chapter 11 plan go into effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the Eastern District of New York.

The plan was confirmed on Aug. 26, as previously reported.

The restructuring consists of the funding of an additional $40.71 million of new money 9% series 2021A bonds due Jan. 1, 2041 to provide for the payment of all outstanding entrance fee refunds in full, partial funding of the debtor’s minimum liquid reserve requirements under applicable New York State law and a necessary debt service reserve fund.

It will also provide for the contribution of $9 million from Amsterdam Continuing Care Health System to the debtor to fund the balance of the minimum liquid reserve requirements.

Additionally, the debtor’s current series A and B bonds will be exchanged for a pro rata share of $127.33 million of new 5% 2021B bonds due Jan. 1, 2058.

The debtor will also enter into a liquidity support agreement, under which the member’s obligations will be fully funded from the closing of the sale of a not-for-profit nursing home operated by an affiliate of the debtor and member, to be dedicated to regulatory compliance, including the funding of future minimum liquid reserve requirements and entrance fee refund obligations. The funds will be held in a segregated account at the debtor and will not be subject to trustee liens.

According to the disclosure statement, holders of administrative expense claims, accrued professional compensation claims, priority tax claims and other priority claims will be paid in full.

Holders of other secured claims will receive cash equal to their claims, the collateral securing their claims, or other treatment that leaves their claims unimpaired.

Holders of series 2014A and series 2014B bonds claims will receive, in exchange for their existing bonds, a pro rata share of the series 2021B bonds.

The series 2014C bonds will be canceled in whole without any payment or consideration.

Holders of general unsecured claims will receive an amount equal to 15% of their claims.

Holders of resident refund claims will receive payment in full but without interest.

Intercompany claims will be extinguished with no distribution.

Interests will be reinstated and holders will retain their interests.

The Port Washington, N.Y.-based senior living community builder and operator filed bankruptcy on June 14 under Chapter 11 case number 21-71095.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.