Senior Care Centers third amended plan of reorganization confirmed

By Caroline Salls

Pittsburgh, Dec. 13 – Senior Care Centers, LLC’s third amended plan of reorganization was confirmed Friday by the U.S. Bankruptcy Court for the Northern District of Texas.

According to the disclosure statement, the plan provides for the reorganization of the Senior Care debtors by retiring, cancelling, extinguishing and/or discharging the existing equity interests and issuing new equity to an unsecured creditor trust, subject to dilution by a management incentive plan.

To fund its reorganization, the company said it will use cash on hand as of the plan effective date and proceeds of a Harden escrow and an exit facility.

Administrative claims, priority tax claims, priority unsecured claims and asset-based credit facility claims will be paid in full in cash.

Treatment of other secured claims will include either payment in full in cash, the return of the collateral securing the claim, receipt of the proceeds from the sale of the collateral or reinstatement of the claim.

Holders of general unsecured claims will receive a share of an unsecured creditor recovery.

Holders of subordinated debt claims, intercompany claims and existing interests will receive no distribution.

Senior Care Centers is a Dallas-based skilled nursing and long-term care industry leader in Texas and Louisiana. The company filed bankruptcy on Dec. 4, 2018 under Chapter 11 case number 18-33967.

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