Life Care St. Johns: court OKs disclosure statement, confirmation hearing Feb. 21

By Lisa Kerner

Charlotte, N.C., Jan. 3 - Life Care St. Johns, Inc.'s disclosure statement was approved by the U.S. Bankruptcy Court for the Middle District of Florida on Friday, according to an attorney familiar with the case.

The plan confirmation hearing is scheduled for Feb. 21.

As previously reported, under the plan treatment of creditors will include the following:

• Administrative claims and priority claims will be paid in full in cash;

• Holders of series 2006 bonds will exchange their existing bonds for a share of $41.71 million of newly issued series 2014 A bonds due 2048 and $15.43 million of series 2014B bonds due 2048;

• Series A and series B notes will fund a distribution trust for holders of pre-bankruptcy refund claims. The principal amount of the series A note will be $4.67 million. The principal amount of the B note will be $3.11 million. The notes will mature on the fifth anniversary of the plan effective date;

• Holders of general unsecured claims will receive the lesser of 50% of the claim amount or a share of $150,000;

• Holders of intercompany claims will receive no distribution unless all other senior claims are paid in full. If this happens, the reorganized company may pay the intercompany claimants in accordance with its business judgment and applicable law; and

• Interest holders will retain their rights as members of Life Care St. Johns but will receive no distribution.

Life Care St. Johns, a St. Augustine, Fla.-based not-for-profit, filed for bankruptcy on July 3. Its Chapter 11 case number is 13-04158.

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