Friendship Village’s disclosure statement approved by court

By Sarah Lizee

Olympia, Wash., March 12 – Evangelical Retirement Homes of Greater Chicago, Inc., which does business as Friendship Village of Schaumburg, received approval of the disclosure statement for its Chapter 11 plan of liquidation, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan contemplates the sale of substantially all the debtor’s assets, as previously reported.

The company received approval to sell its assets to stalking horse bidder IL CCRC LLC. Proceeds from the sale will be used to pay allowed administrative expense claims, priority tax claims, professional fee claims, DIP facility claims, and U.S. trustee fees.

Under the plan, other secured claims and other priority claims are unimpaired.

Holders of $131.6 million of bond claims are expected to receive a 23.3% recovery.

Treatment of deficiency claims will be determined by the amount of net sale proceeds available for distribution to this class.

Holders of $20 million of former resident claims are expected to receive a recovery of 10% to 17.5%.

Holders of opt-out former resident claims will receive nothing under the plan.

The expected recovery for $3.96 million of non-resident general unsecured claims is unknown.

Holders of intercompany claims and interests in the debtor will receive nothing.

The plan confirmation hearing is scheduled for April 30.

The Schaumburg, Ill.-based retirement community filed bankruptcy on June 9, 2023 under Chapter 11 case number 23-07541.

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