Friendship Village’s Chapter 11 plan draws objection from trustee

By Sarah Lizee

Olympia, Wash., April 18 – Evangelical Retirement Homes of Greater Chicago, Inc.’s (Friendship Village of Schaumburg) Chapter 11 plan of liquidation drew an objection from U.S. trustee Patrick S. Layng, according to documents filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan confirmation hearing is scheduled for April 30.

Layng said there are significant deficiencies with the plan, including improper third-party releases, and the inclusion of a settlement that the court lacks jurisdiction over and does not have the authority to approve.

The U.S. trustee also objected to the requirement that creditors opt out of the third-party releases, coupled with a “death trap.”

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

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