Desert Home, committee secure approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Dec. 8 – Borrego Community Health Foundation, which does business as Desert Home Care, and its official committee of unsecured creditors received approval of the disclosure statement for their Chapter 11 plan for the debtor, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of California.

The confirmation hearing is scheduled for Jan. 17.

The plan proposes to pay or otherwise satisfy allowed administrative claims, secured claims, general unsecured claims and a portion of the Department of Health Care Services (DHCS) claim in full on the effective date or as soon as possible after that.

The plan creates class A and class B liquidating trust interests and proposes to pay allowed general unsecured claims and the allowed DHCS claim in line with a settlement with DHCS.

The plan provides that the liquidating trustee will administer the class B liquidating trust assets and continue the wind-down and liquidation of the debtor after the effective date, and a co-liquidating trustee will administer the class A liquidating trust assets to pay holders of allowed general unsecured claims.

The San Diego-based provider of in-home skilled nursing services filed Chapter 11 bankruptcy on Sept. 12, 2022 under case number 22-02384.

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