California-Nevada Methodist Homes’ plan unanimously accepted

By Sarah Lizee

Olympia, Wash., June 28 – California-Nevada Methodist Homes’ Chapter 11 plan was accepted by all voting creditors, according to a tabulation summary filed with the U.S. Bankruptcy Court for the Northern District of California.

The holder of the $30.54 million class 3 Wilmington Trust, NA secured claim, the holder of the $33.69 million class 4 California Department of Health Care Access and Information (HCAI) secured claim, and all 17 holders of $183,184.25 general unsecured claims voted to accept the plan.

The confirmation hearing is scheduled for June 30.

As previously reported, the company closed the sale of substantially all of its assets on Dec. 6.

The claims of the debtor’s former employees were satisfied at the close of the sale, and holders of claims for resident entrance fee liability will be satisfied by the buyers.

The plan includes a $750,000 reserve for administrative expenses, a total dividend of $200,000 to be split among the remaining general unsecured creditors, and a reserve of about $581,000 for estimated wind-down expenses.

It also includes a transfer to Wilmington Trust of the funds held in the bond reserve account, and payment of a portion of the debtor’s cash to the HCAI on the effective date of the plan.

Any remaining assets when the debtor is liquidated will be transferred to HCAI upon liquidation.

Oakland, Calif.-based California-Nevada Methodist Homes is a not-for-profit corporation that operates continuing care retirement communities. It filed bankruptcy on March 16, 2021 under Chapter 11 case number 21-40363.

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