Saint Vincents Catholic Medical wins disclosure statement approval

By Jim Witters

Wilmington, Del., May 21 - Saint Vincents Catholic Medical Centers of New York received approval for the disclosure statement associated with its amended joint Chapter 11 plan of reorganization, according to documents filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The voting deadline is June 15.

A plan confirmation hearing is scheduled for 11 a.m. ET on June 25.

Treatment of creditors

Under the proposed plan of reorganization, treatment of creditors would include the following:

• Holders of priority non-tax claims will be paid in full in cash;

• Holders of other secured claims will receive either the collateral securing their claims, the value of the collateral or the net proceeds from the sale of the collateral;

• Holders of Sun Life secured claims and MedMal Trusts secured claims will receive distributions equal to the amount of specified property sale proceeds;

• Holders of general unsecured claims will receive a share of proceeds in an unsecured claims fund; and

• Holders of multi-employer pension fund subordinated unsecured claims will receive a share of the unsecured claims fund proceeds after all general unsecured claims are paid in full.

"The debtors received approximately 4,700 proofs of claim asserted by personal injury claimants, trade vendors, employees and many others, all of which need to be liquidated and/or reconciled. The filed proofs of claim assert approximately $9.5 billion in the aggregate. The debtors estimate that the GUC (general unsecured claims) claims will total approximately $1 billion in aggregate," according to the disclosure statement.

Saint Vincents, a New York-based health-care system, filed for bankruptcy on April 14, 2010. Its Chapter 11 case number is 10-11963.

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