Friendship Village’s disclosure statement hearing moved to Dec. 13

By Sarah Lizee

Olympia, Wash., Nov. 22 – Evangelical Retirement Homes of Greater Chicago, Inc., which does business as Friendship Village of Schaumburg, had the hearing on approval of the disclosure statement for its Chapter 11 plan of liquidation moved to Dec. 13 from Nov. 22, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan contemplates the sale of substantially all the debtor’s assets, as previously reported.

The company has received approval to sell its assets to stalking horse bidder IL CCRC LLC. The purchase price under the stalking horse agreement is $114.77 million.

Proceeds from the sale will be used to pay allowed administrative expense claims, priority tax claims, professional fee claims, DIP facility claims, and U.S. trustee fees.

Under the plan, other secured claims are unimpaired.

Holders of deficiency claims, non-participating current resident claims, intercompany claims and interests in the debtor are not expected to receive any recovery.

Holders of participating current resident claims, which are estimated at around $77.89 million, are expected to receive a recovery of 56%.

Holders of former resident claims, which are estimated at $20 million, are expected to receive a 10% recovery.

Holders of general unsecured claims, estimated at $4 million, are not expected to receive anything.

The Schaumburg, Ill.-based retirement community filed bankruptcy on June 9 under Chapter 11 case number 23-07541.

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