Former Christian Care Communities’ plan effective as of Feb. 14

By Sarah Lizee

Olympia, Wash., Feb. 17 – The Chapter 11 plan of CCC Wind Down, Inc., formerly Christian Care Communities & Services, went into effect on Tuesday, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan was confirmed on Jan. 30, as previously reported.

In July 2022, the court approved the sale of the company’s assets to North Texas Benevolent Holdings, LLC for $45 million. The sale closed on Dec. 1.

The plan contemplates the continued liquidation and sale of the debtors’ assets and the prosecution of causes of action belonging to the debtors or bankruptcy estate. The proceeds realized from this will be distributed under the plan.

The plan also incorporates a settlement between the debtors, prepetition and debtor-in-possession lender UMB Bank, NA and the official committee of unsecured creditors.

Under the plan, allowed administrative claims, priority tax claims, priority non-tax claims and secured property tax claims will be paid in full.

Claims of residents under resident agreements are unimpaired and will be cured if not already.

UMB Bank, in full and final satisfaction of its allowed $54.06 million secured lender claim, will receive payment in cash on the effective date equal to the amount of the remaining sale proceeds and other cash and cash equivalents of the debtors, less the amount required to be reserved for plan closing costs (provided that such amount will not exceed $4.27 million) and the $150,000 GUC reserve amount. UMB will also receive, from time to time after the effect date, some of the proceeds of the debtors’ assets. UMB won’t participate in distributions under the general unsecured claims class on account of its unsecured deficiency claim.

To the extent that an other secured claim hasn’t been previously paid in full, the debtors will pay the holder an amount equal to the allowed amount of the claim, which will be equal to the value of at least the holder’s secured interest in the debtors’ interest in the property, measured in each case subject to prior valid and enforceable liens.

Alternatively, the debtors may surrender to the secured claimant the personal property in which they hold an interest, to the extent it is not also subject to liens of UMB, in full and final satisfaction of the claim. Should the debtors sell any property that is subject to a lien securing an other secured claim, free and clear of the lien, the lien will attach to the proceeds of the sale in the same priority as existed prior to the sale.

Holders of general unsecured claims receive cash on a pro rata basis, subject to the plan administrator expenses, from the $150,000 GUC reserve amount, the avoidance action income, all proceeds of the committee assets within 21 days of liquidation of the same, and 5% of the ERC income (proceeds of the debtors’ employee retention credit received on or after Dec. 1, 2022 under the Cares Act) as it is received. The plan administrator will make these distributions when available.

Membership interests will be extinguished.

The Texas-based non-profit faith-based organization operates three communities for seniors in Mesquite, Fort Worth and Allen. The company filed bankruptcy on May 23, 2022 under Chapter 11 case number 22-80000.

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