Foundation Healthcare filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Liquidation and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for the liquidation of the Debtors’ remaining assets, including the pursuit of Causes of Action, and the distribution of the net proceeds to holders of Allowed Claims. The execution and consummation of the Plan will be facilitated through the Plan Administrator. The Plan Administrator will be designated in the Plan Supplement to be Filed not less than ten (10) days prior to the Confirmation Hearing. The Plan Administrator shall be authorized pursuant to the terms of the Plan to act on behalf of the Debtors to administer and liquidate, as appropriate, the Debtors’ assets, investigate and pursue Causes of Action, and make Distributions pursuant to the terms of the Plan. Though the Plan is styled a ‘Joint Plan,’ the Plan as drafted consists of two (2) separate Plans – one for each Debtor. The Cases are not substantively consolidated and the liquidation of assets and treatment of Claims for each Debtor will be separately maintained and administered.”
In addition, “Each holder of an Allowed Administrative Expense Claim other than the DIP Administrative Claim and Professional Claims, including any Post-Petition Tax Claim, shall receive 100% of the unpaid Allowed amount of such Administrative Expense Claim in Cash in the ordinary course of business or as soon as reasonably practicable after the later of (a) the Effective Date, (b) payment in full of the DIP Administrative Claim, (c) the date on which such Administrative Expense Claim becomes Allowed, or (d) such date as is mutually agreed upon by the applicable Debtor or Liquidating Debtor and the Holder of such Allowed Administrative Expense Claim.”
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