January 20, 2009 · 1 Comment
On Monday, Contemporary Healthcare Fund I, L.P. filed a motion with the bankruptcy court seeking the conversion of the bankruptcy cases of Integra Hospital Plano, L.L.C. and its affiliates from chapter 11 cases to chapter 7 cases. In the motion, Contemporary Healthcare, which it asserts holds a $6 million secured claim, argues that conversion is appropriate because Integra Hospital is suffering significant continuing losses from operations, declining patient care (quoting the motion: “the patient census at the hospitals operated by the debtors has declined significantly since the commencement of the cases”), and the debtors have been unsuccessful in finding a buyer for their assets (the motion states that Integra had expected to realize approximately $19 million from selling its assets but has received an offer of only $6.55 million, which is less than the amount owed to its first lien lender).
In addition, Contemporary Healthcare also seeks relief from the automatic stay in order for it to exercise remedies with respect to its collateral. The motion notes that Integra’s first lien lender (Bank of Texas, N.A.), whose liens Contemporary Healthcare appears to dispute, has also sought stay relief with respect to many of the same assets.
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Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: asset, bankrupt, bankruptcy, baton, chapter 11, chapter 7, claim, contemporary, conversion, convert, creditor, fund, healthcare, hospital, integra, liquidate, liquidation, motion, plano, rouge, sale, secured, sell
Cornerstone Ministries Investments, Inc. and the Official Committee of Unsecured Creditors appointed in its bankruptcy case have filed a jointly-proposed Plan of Liquidation and Disclosure Statement for the company. Previously, the company and the Creditors’ Committee filed competing proposed plans of liquidation (more details available here).
The jointly-proposed plan of liquidation provides for the liquidation of the company’s assets to cash and the distribution of that cash to holders of allowed claims against the company. The proposed plan does not provide a release for any party, but does exculpate certain parties from liability with respect to acts taken during the bankruptcy case and after the effective date of the proposed plan. The plan does not exculpate the company, its management or any related entities.
The proposed disclosure statement provides estimated recoveries for creditors based upon the classification of their claim. Holders of allowed unsecured claims and bondholder claims are expected to recover between 9% and 36% of the allowed amount of their claims. Holders of secured claims are expected to recover the full allowed amount of their claims. Equityholders are not expected to receive any recovery.
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Categories: Bankruptcy and Restructuring News · Disclosure Statement · Major Bankruptcy Case Events · Plan of Liquidation
Tagged: allow, bankrupt, bankruptcy, chapter 11, claim, committee, cornerstone, creditor, disclosure, exculpate, exculpation, investments, joint, liquidate, liquidation, ministries, official, plan, proposed, recover, release, statement, unsecured
January 20, 2009 · 1 Comment
ATA Airlines, Inc. has filed two motions seeking approval of agreements with AirTran Airways, Inc. First, ATA filed a motion seeking bankruptcy court approval of a settlement agreement with AirTran relating to leases of takeoff and landing operating authorizations (commonly referred to in the industry as “slots”) at New York’s LaGuardia Airport (LGA) and Washington, D.C.’s Washington National Airport (DCA). Pursuant to three separate agreements, ATA leased 12 slots at LGA and two slots at DCA to AirTran. Pursuant to ATA’s court-approved asset sale agreement with Southwest Airlines Co. (more details available here), ATA has agreed to transfer the LGA slots to Southwest and that sale is likely to close in March 2009, prior to ATA’s ability to effectively terminate the leases of those slots to AirTran.
Therefore, ATA and AirTran have agreed to a settlement of the amounts remaining under the leases of the LGA slots. Under the proposed settlement agreement, AirTran would pay ATA $500,000 in full satisfaction of the remaining rent due under the leases (which totals $770,400) and the leases would terminte eleven days after entry of an order approving the settlement. As part of the settlement, AirTran and ATA have also agreed to a mutual release of all claims or causes of action under the leases.
Pursuant to the second agreement for which ATA has sought approval, AirTran has agreed to acquire the DCA slots for $1.34 million. Therefore, the DCA slots are not part of the settlement agreement.
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Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: agreement, airline, airport, airtran, airways, ata, authorization, bankrupt, bankruptcy, chapter 11, dca, laguardia, landing, lease, lga, national, operating, sale, sell, settle, settlement, slot, southwest, takeoff, terminate, washington
