| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Henry Ford Village, Inc. > News item |
Henry Ford Village’s largest unsecured creditor objects to plan
By Sarah Lizee
Olympia, Wash., Nov. 23 – Henry Ford Village, Inc.’s Chapter 11 plan of liquidation drew an objection from the company’s largest unsecured creditor, Life Care Services, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.
Life Care said the plan provides that the confirmation order will act as a discharge of debt owed by the debtor and a permanent injunction against all parties in interest from pursuing claims and causes of action against the debtor and liquidating trust beyond the relief expressly provided in the plan and confirmation order.
The creditor said this provision violates the bankruptcy code, as Henry Ford Village is not entitled to a discharge of its debt given that this is a liquidating plan.
Life Care also noted that the plan defines general unsecured claims to mean any claim that is a LARA escrow claim, administrative claim, priority tax claim or a claim entitled to priority under the bankruptcy code or any final order of the court.
“This definition is non-sensical,” the creditor said in its objection.
Life Care said it is unclear why the debtor lumped these claims into the general unsecured claim definition, and noted that only general unsecured claimholders are entitled to vote on the plan.
“If the debtor counts these types of claims as general unsecured claims, then the voting is tainted, and the plan is not confirmable,” the creditor said.
A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Dec. 6.
Henry Ford Village is a senior living community based in Dearborn, Mich. The company filed Chapter 11 bankruptcy on Oct. 28, 2020 under case number 20-51066.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.