True Health Diagnostics plan of liquidation to be confirmed by court

By Caroline Salls

Pittsburgh, Nov. 27 – True Health Diagnostics LLC’s plan of liquidation will be confirmed, according to a docket entry made Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The docket entry said objections to the plan were overruled.

A revised confirmation order will be submitted to the court.

As previously reported, under the plan, priority claims will be paid in full in cash.

Holders of “other” secured claims will be paid in full in cash, have their claims reinstated or receive the collateral securing the claims.

Holders of pre-bankruptcy senior obligation claims will receive a share of cash on hand after payment of debtor-in-possession facility claims, administrative expense claims, tax claims and priority claims, as well as a share of series A beneficial interests in a liquidating trust.

Holders of second-lien claims will receive series B beneficial interests in the liquidating trust.

Holders of general unsecured claims will receive series C beneficial interests in the liquidating trust, entitling them to a share of 10% of net proceeds generated from litigation assets.

Holders of equity interests and subordinated claims will receive no distribution.

True Health is a Richmond, Va.-based blood testing company. The company filed bankruptcy on July 30 under Chapter 11 case number 19-11689.

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