The U.S. Bankruptcy Court approved HCR ManorCare’s Disclosure Statement and concurrently confirmed the Company’s Modified Prepackaged Plan of Reorganization.
Documents filed with the Court note, “The QCP Claims shall be deemed Allowed on the Effective Date in the aggregate amount of $445,796,590. The Intercompany Note Claim evidenced by the Intercompany Note shall be Allowed in the amount of $25,000,000 plus accrued and unpaid interest thereon and be Reinstated under the Plan, and any liens held by HCR Home Health Care and Hospice, LLC against the assets of the Debtor securing the Intercompany Note shall survive the Effective Date in the same priority that as such liens existed as of the Petition Date.”
The Company explains, “Under the agreement, the Carlyle Group will lose its equity stake, Quality Care will own ManorCare, and former ManorCare CEO Paul Ormond, who left last fall, gets $116.7 million in previously deferred compensation.” This privately-held health care services provider filed for Chapter 11 protection on March 4, 2018, listing $4.2 billion in pre-petition assets.
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