Orianna amended plan of reorganization confirmed by bankruptcy court

By Sarah Lizee

Olympia, Wash., Jan. 15 – 4 West Holdings, Inc.’s (Orianna) third amended joint plan of reorganization was confirmed on Jan. 8 by the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Orianna landlord Omega Healthcare Investors, Inc. will receive in exchange for its secured claim the transfer portfolio and other compromise consideration, as well as a plan sponsor consideration and any remaining distribution trust assets, other than a general unsecured claims cash amount, after payment in cash or reserve for priority claims.

Holders of general unsecured claims will receive a share of the general unsecured claims cash amount.

Old parent interests will be canceled, and holders will receive no distribution.

As reported, SC-GA 2018 Partners, LLC was the winning bidder to serve as the plan sponsor. The bid includes a $195 million cash component, a $30 million seven-year subordinated note with 6% cash interest rate, assumption of the company’s paid-time-off obligations, the assumption or waiver of $18 million in affiliated-entity claims, establishment of a tort claimants trust and funding the trust in the amount of $2 million and capitalization of the reorganized Orianna with at least $25 million of equity.

Dallas-based 4 West holds the Orianna Health Systems trademark. It filed for Chapter 11 on March 6, 2018 under case number 18-30777.

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