Park Place bond borrowers’ disclosure approved; plan hearing March 29

By Caroline Salls

Pittsburgh, Feb. 24 – Park Place of Elmhurst Project Illinois Finance Authority revenue bond borrowers Timothy Place, NFP and Christian Healthcare Foundation, NFP’s Chapter 11 plan disclosure statement was approved by the U.S. Bankruptcy Court for the Northern District of Illinois, according to a notice from bond trustee UMB Bank, NA.

The plan confirmation hearing is scheduled for March 29.

As previously reported, under the proposed restructuring terms set by an agreement with the bondholders:

• Issuer Illinois Finance Authority will issue new series 2016 bonds in exchange for outstanding series 2010 bonds;

• Holders of series 2010A, series 2010B and series 2010C bonds will receive a share of series 2016A bonds, a share of series 2016C bonds and payment in full in cash on account of its allocable share of unpaid interest through the date immediately preceding the completion of the restructuring;

• Holders of the series 2010D bonds will exchange their bonds for a share of series 2016B bonds, a share of series 2016C bonds and payment in full in cash of interest accrued through the date immediately preceding the completion of the transaction;

• The series 2016A bonds will be issued as current paying bonds, bear interest at rates between 6.20% and 6.44% and mature between 2030 and 2055. These bonds will be subject to optional redemption before maturity beginning five years after the exchange, at a price of 102 in year five, 101 in year six and par thereafter;

• The series 2016B bonds will bear interest at a rate of 5 5/8% and mature in 2020. They will be subject to mandatory redemption from entrance fees;

• The series 2016C bonds will bear interest at 2%, payable semiannually, but only from excess cash, and will mature in 2055 and be subject to redemption at the option of the borrower, at a price equal to 65% of the par amount outstanding from years one through five, 75% of the par amount outstanding from years six through 10 and 100% of the par amount outstanding thereafter;

• Other secured claims will be reinstated;

• Holders of general unsecured claims will be paid in full in cash; and

• Providence Life Service will retain all membership interests in the reorganized debtors.

The borrowers’ Chapter 11 cases were filed on Jan. 17 and are being jointly administered under case numbers 16-01336 and 16-01337.

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