American Physician Partners gives voting results for Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Jan. 5 – American Physician Partners, LLC’s Chapter 11 plan was accepted by the prepetition secured lender class and rejected by the unsecured class, according to a tabulation summary filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, all 47 holders of $597.06 million prepetition secured lender claims voted to accept the plan.

Meanwhile, 10 holders, or 25% in number, of $21.13 million, or 57.63% in amount, of unsecured claims voted to accept the plan, while 30 holders, or 75% in number, of $15.53 million, or 42.37% in amount, voted to reject the plan.

The plan confirmation hearing is scheduled for Tuesday.

As a reminder, the company filed Chapter 11 to facilitate and complete its wind-down process and liquidate its remaining assets in an orderly fashion.

The pre-packaged plan provides for a liquidating trust that will be funded with the remaining assets of the debtors. There will also be a $250,000 general unsecured creditor fund.

Administrative claims, tax claims, priority non-tax claims and other secured claims are unimpaired by the plan.

Holders of prepetition lender secured claims will retain their liens on their applicable collateral, consisting of some or all of the liquidating trust assets, but excluding the GUC fund, the liquidating trust reserve, the professional fee escrow and the administrative/priority/other distribution reserve, until the collateral is disposed of or released, and the net proceeds of the disposition, will be paid to holders after payment of or reserve for higher priority claims.

Holders of unsecured claims will receive a pro rata share of the liquidating trust interests in exchange for their claims, which entitle the beneficiaries to a pro rata share of the GUC fund and a pro rata share of the remaining liquidating trust assets.

Holders of intercompany claims, intercompany interests, and interests will not receive any distribution.

American Physician Partners is a scaled emergency department and hospitalist management platform based in Brentwood, Tenn. The company filed bankruptcy on Sept. 18 under Chapter 11 case number 23-11469.

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