Park Place of Elmhurst plan confirmation hearing continued to March 16

By Sarah Lizee

Olympia, Wash., Feb. 25 – Timothy Place, NFP, which does business as Park Place of Elmhurst, had the hearing on confirmation of its Chapter 11 plan continued to March 16, according to a minute entry filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, the company said in its petition that it has been in discussions with its largest creditors regarding a restructuring of its debt and entered into a forbearance agreement on May 14, 2020 with UMB Bank, NA as bond trustee.

In connection with the forbearance agreement, the company entered into a plan support agreement with two of its largest creditors, under which certain Park Place of Elmhurst project revenue bonds issued April 1, 2016 by the Illinois Finance Authority will be restructured.

Distributions under the plan will be funded with cash derived from the reorganized debtors’ business operations, funds from new 2021 bonds, and a contribution from plan sponsor Providence Life Services.

According to the disclosure statement, administrative claims, priority tax claims and other priority claims will be paid in full.

Holders of 2016A and 2016B bond claims will exchange their bonds for a pro rata share of $107.27 million of 5 1/8% bonds. The bonds will bear interest only for the first three years and then amortize for 37 years.

The plan sponsor will pay the 2016C bond redemption payment to the 2016 bond trustee, who will distribute the payment pro rata to the holders of record of the 2016C bonds in full satisfaction. The 2016C bonds will be canceled and deemed to no longer be outstanding, except to the extent necessary to complete the distribution to holders.

Holders of other secured claims will have their claims reinstated.

Holders of general unsecured claims will receive a cash payment of 3% of the unpaid portion of their claims.

The sponsor, the sole member of each of the debtors, will retain all membership interests in the reorganized debtors.

The Elmhurst, Ill.-based skilled nursing facility filed bankruptcy on Dec. 15 under Chapter 11 case number 20-21554.

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