Christian Care files plan; disclosure statement hearing Nov. 30

By Sarah Lizee

Olympia, Wash., Nov. 16 – Christian Care Communities & Services filed a Chapter 11 plan of liquidation and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

In July, the court approved the sale of the company’s assets to North Texas Benevolent Holdings, LLC for $45 million. The sale is expected to close on Dec. 1.

The plan provides for the liquidation of all of the debtors’ assets followed by the distribution of all resulting proceeds to creditors.

Allowed administrative claims, priority tax claims, priority non-tax claims and secured property tax claims will be paid in full in cash.

Holders of secured lender claims will receive payment of cash on the effective date equal to the amount of the remaining sale proceeds, less the total scheduled value of all acquired assets that are subject to the official committee of unsecured creditors’ challenge, and any portions of the sale proceeds needed to fund the budgeted expenses. These holders will also receive the liquidation proceeds of any remaining assets to which the secured lender holds a lien that are not challenged assets within 21 days of collection of the proceeds by the plan administrator. Within 21 days of the final resolution of the committee’s challenge and resolution of the amount of the allowed secured claim, the plan administrator will distribute the funds to the secured lender to the extent of the value of the secured claim.

To the extent that a secured claim has not been previously paid in full, the debtors will pay the holder an amount equal to at least the value of their interest in the debtors’ interest in the property. To the extent that the debtors sell any property that is subject to the lien securing a secured claim, free and clear of the lien, the lien will attach to the proceeds of the sale.

General unsecured creditors will be paid cash on a pro rata basis from avoidance action income and the remaining value of the assets of the estates following satisfaction of senior claims.

Membership interests will be extinguished.

A hearing on conditional approval of the disclosure statement is scheduled for Nov. 30.

The Texas-based non-profit faith-based organization operates three communities for seniors in Mesquite, Fort Worth and Allen. The company filed bankruptcy on May 23 under Chapter 11 case number 22-80000.

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