Consulate Health seeks exclusivity extension to implement settlement

By Sarah Lizee

Olympia, Wash., Sept. 8 – CMC II, LLC, which does business as Consulate Health Care, is seeking another 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through Dec. 26 from Sept. 27 and the solicitation period through Feb. 24, 2022 from Nov. 26.

The company said the extension would provide the debtors and their advisers the opportunity to obtain approval of a settlement agreement and then fully negotiate, confirm and implement the terms of a Chapter 11 plan.

The settlement agreement is between the debtors, CPSTN Operations, LLC, the debtors’ non-debtor affiliates and the official committee of unsecured creditors, among others.

The debtor said the settlement seeks to resolve a number of potential disputes, claims and issues, including potential assumption of various creditors by CPSTN, and the funding available for distribution to creditors, a plan and the wind-down of the debtors’ estates. It also addresses potential estate claims against the non-debtor affiliates, certain professional fees, amounts to be paid to the United States and the relator in resolution of their claims arising out of the FCA conduct and releases among parties.

A hearing is scheduled for Sept. 29.

Consulate Health Care is a Maitland, Fla., senior health care services provider. The company filed bankruptcy on March 1 under Chapter 11 case number 21-10461.

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