Path Medical disclosure statement OK’d; plan hearing set for May 26

By Sarah Lizee

Olympia, Wash., April 12 – Path Medical, LLC received approval of the disclosure statement for its amended Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Florida.

The plan confirmation hearing is scheduled for May 26.

According to the company’s amended disclosure statement, a liquidating trust will be created for the purpose of funding distributions under the plan.

General administrative expense claims and priority tax claims will be paid in full.

Lender claims will be paid from the net proceeds of a sale, after payment of general administrative expenses, professional administrative expenses, priority tax claims, priority claims, cure claims and the general unsecured claims cash pool. Any portion of the lender claims not satisfied by a sale will be treated as a general unsecured claim.

Holders of other secured claims will receive payment in full in cash, delivery of the collateral securing their claims, or other treatment leaving them unimpaired.

Other priority claims will be paid in full in cash.

Holders of general unsecured claims will receive their pro rata share of a $150,000 cash pool, and a beneficial interest in the liquidation trust, which will entitle holders to their pro rata share of litigation proceeds and liquidating trust assets.

Holders of convenience class claims will receive payment in full after the later of two weeks after the effective date and the date the claims become allowed.

Intercompany claims and equity interests will be canceled with no distribution to holders.

The Fort Lauderdale, Fla.-based company provides acute trauma treatment and diagnostic imaging services to medical patients. The company filed bankruptcy on Aug. 28, 2021 under Chapter 11 case number 21-18338.

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