Former LRGHealthcare wins confirmation of Chapter 11 liquidation plan

By Sarah Lizee

Olympia, Wash., Nov. 2 – HGRL, formerly LRGHealthcare, received confirmation of its Chapter 11 plan of liquidation, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of New Hampshire.

Under the plan, administrative expense claims and priority tax claims will be paid in full.

The debtor-in-possession claim has been satisfied in full. The DIP lender will not receive any further payments on account of the claim.

Holders of priority non-tax claims will receive payment in full.

After payment of all administrative expense and priority claims, holders of the U.S. Department of Housing and Urban Development (HUD) claims, fees payable to the U.S. trustee, amounts payable to any secured creditors other than HUD under the plan, and costs of administering the plan, the liquidating trustee will determine the net distributable assets and pay to HUD 88.5% of the net distributable assets. HUD may also receive the HUD cause of action share, which is 60% of net cause of action proceeds.

Holders of allowed secured claims will have their claims reinstated; retain a lien securing their claims and receive deferred cash payments from the liquidating trust totaling at least the value of their claims as of the effective date; receive the collateral securing their claims; or receive cash equal to their claims.

Holders of general unsecured claims will receive a pro rata share of the net liquidating trust assets.

Holders of convenience claims will receive cash equal to 10% of their claims.

Holders of insured claims will recover only from the available insurance coverage of the debtor.

LRGHealthcare is a Laconia, N.H.-based not-for-profit health care charitable trust operating Lakes Region General Hospital, Franklin Regional Hospital and several other affiliated medical practices and service programs. The company filed Chapter 11 bankruptcy on Oct. 19, 2020 under case number 20-10892.

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