Gulf Coast Health solicitation procedures draw objection from trustee

By Sarah Lizee

Olympia, Wash., March 2 – Gulf Coast Health Care, LLC’s solicitation procedures for its Chapter 11 plan of liquidation drew an objection on Wednesday from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Vara said the one-week period between the deadline to file claims objections and the deadline for affected creditors to file rule 3018 motions is too short. Creditors will receive notice by U.S. mail, which may not even reach them within a week, the U.S. trustee said. Vara said the period should be extended by two weeks.

The U.S. trustee said he also objects to the proposed provision regarding treatment of claims to the extent it seeks to address such treatment other than for plan voting purposes.

“In order to provide sufficient notice, any relief regarding the treatment of claims that goes beyond plan voting should be the subject of a separate motion or objection, served on the parties who hold the affected claims,” Vara said.

The U.S. trustee also requested that the court deny the debtors’ requested finding that, with respect to non-voting classes, the non-voting packages be deemed alternative disclosure statements and summary plans.

The disclosure statement hearing is scheduled for March 4.

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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