Gulf Coast Health: General unsecured plan treatment to be mediated

By Sarah Lizee

Olympia, Wash., Jan. 21 – The court overseeing Gulf Coast Health Care, LLC’s Chapter 11 bankruptcy case ordered the company to mediation regarding the treatment of general unsecured creditors under its plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Retired judge James M. Peck will be the mediator.

The mediation is set to start on Jan. 31.

According to the company’s disclosure statement, on the effective date, holders of general unsecured claims will receive a pro rata share distribution, along with Omega unsecured claimholders, subordinated seller note claims, and service provider claims, of general unsecured claim trust interests.

However, if the class of general unsecured creditors votes to accept the plan, holders of the Omega unsecured claims will contribute their pro rata distribution of the GUC trust interests and any cash distribution received from holders of subordinated seller note claims under the Omega/Delta subordination agreement to the holders of general unsecured claims; and holders of the service provider claims will contribute their pro rata distribution of the general unsecured claims trust interests to general unsecured trust interests to the holders of general unsecured claims. General unsecured claimholders will then receive their respective pro rata distribution of those contributed amounts.

Pensacola, Fla.-based Gulf Coast Health Care is a nursing home chain. The company filed Chapter 11 bankruptcy on Oct. 14 under case number 21-11336.

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