Orianna Health Systems – Omega Files Further Detail as to Proposed Credit Bid

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September 13, 2018 – Orianna Health Systems’ Creditor OHI Asset RO (the “Omega Entities”) filed documents which provide further detail as to its plans to credit bid for assets of the Debtors (the “Omega Bid”) [Docket No. 969]. The notice accompanying the documents states, “Both to amend and clarify certain terms of the Omega Bid, and to facilitate comparison of the competing bids of the Omega Entities and the Purchaser in connection with the scheduled hearings on the Credit-Bid Motion and the Sale Motion scheduled for September 17, 2018, attached hereto as Exhibit A is a detailed summary of the Omega Bid. Attached hereto as Exhibit B is a comparison of certain of the key terms of the Omega Bid and the Purchaser’s sale terms as described in the Sale Motion.” The summary notes, “The Omega Entities will credit-bid (i) the entire balance due under that certain “DIP Facility” authorized and funded in accordance with the DIP Financing Order [Docket No. 376], and (ii) so much of their prepetition claims as is necessary to exceed the highest offer submitted by any other qualifying bidder. As a result of the credit-bid, the DIP Facility will be deemed indefeasibly paid in full…..Any portion of the Omega Entities prepetition claims against the Debtors that are not included as part of the foregoing credit-bid will be waived by the Omega Entities, and the Omega Entities will not share in any distribution from the Debtors’ estates. As a result, consummation of the Omega Bid will satisfy all prepetition and postpetition claims of the Omega Entities against the Debtors. Assuming the Omega Entities receive a credit of $205 million against their prepetition claims based on the Debtors’ recent valuation of the Transfer Portfolio and credit-bid a further $227 million as part of the Omega Bid, the remaining unsecured deficiency claim to be waived by the Omega Entities would be approximately $172 million.”

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