Senior Care Centers files plan; disclosure statement hearing July 23

By Caroline Salls

Pittsburgh, June 25 – Senior Care Centers, LLC filed a plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the Northern District of Texas.

According to the disclosure statement, the plan provides for the reorganization of the Senior Care debtors by retiring, cancelling, extinguishing and/or discharging the existing equity interests and issuing new equity to an unsecured creditor trust, subject to dilution by a management incentive plan.

Holders of all claims except for general unsecured and subordinated debt claims are unimpaired under the plan.

Administrative claims, priority tax claims, asset-based credit facility claims will be paid in full in cash.

Treatment of other secured claims will include either payment in full in cash, the return of the collateral securing the claim, receipt of the proceeds from the sale of the collateral or reinstatement of the claim.

Holders of general unsecured claims will receive a share of an unsecured creditor recovery.

Holders of subordinated debt claims, intercompany claims and existing interests will receive no distribution.

To fund Senior Care’s reorganization, the company will use cash on hand as of the plan effective date, proceeds of a Harden escrow and exit facility proceeds.

The disclosure statement hearing is scheduled for July 23.

Senior Care Centers is a Dallas-based skilled nursing and long-term care industry leader in Texas and Louisiana. The company filed bankruptcy on Dec. 4, 2018 under Chapter 11 case number18-33967.

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