Adeptus Health disclosure statement OK’d, confirmation hearing set

New York, Aug. 1 – Adeptus Health Inc. received approval of the disclosure statement for its plan of reorganization from the U.S. Bankruptcy Court for the Northern District of Texas, according to an order filed on Tuesday.

Solicitation of votes will begin on Aug. 4, and objections are due by 4 p.m. ET on Sept. 5.

The confirmation hearing is scheduled for Sept. 13.

Claims will be treated as follows under the plan:

• Administrative expenses and fee claims will be paid in full in cash;

• Holders of claims under the debtor-in-possession facility will receive equity interests in the reorganized company;

• Secured claims of Deerfield Management Co. will also receive equity interests in the reorganized company;

• Medical malpractice claims will be allowed to seek recovery under insurance policies, and if insurance is unavailable or insufficient they will receive a share of the proceeds of a litigation trust, to rank equally with general unsecured claims;

• General unsecured claims will be paid from the litigation trust;

• Convenience claims will be paid at the rate of 20% in cash;

• Subordinated claims will be paid from the litigation trust under the waterfall provisions;

• Preferred interests will be canceled without recovery unless there is money left over from the litigation trust after paying higher priority claims;

• Existing equity interests will be canceled without recovery unless there is money left over from the litigation trust after paying higher priority claims.

Deerfield provided the company with a $45 million DIP facility.

Based in Lewisville, Texas, Adeptus maintains a network of freestanding emergency rooms and partnerships with health care providers. The company filed bankruptcy on April 19 under Chapter 11 case number 17-31432.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.