Envision Healthcare disclosure statement draws creditor objections

By Sarah Lizee

Olympia, Wash., July 28 – Envision Healthcare Corp.’s disclosure statement for its Chapter 11 plan drew objections from the official committee of unsecured creditors and an informal group of fourth-out lenders, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee of unsecured creditors said the debtors and parties to the restructuring support agreement are pushing the cases forward at “breakneck speed and without regard to the recoveries of millions of dollars of scheduled unsecured claims,” even though the debtors’ operations are stable, and there is enough liquidity to fund operations without the need for post-petition financing.

“In the absence of any meaningful engagement from the RSA parties, the committee is performing its statutory mandate to protect its constituency and resist the plans as currently constituted,” the committee said in its objection.

The committee said the disclosure statement should be denied because the plan itself is unconfirmable.

The informal fourth-out lender group agreed, saying the plan improperly classifies their claims in class 6 together with claims of unsecured noteholders and third-out lenders, and impairs the fourth-out lenders’ voting rights.

The disclosure statement hearing is scheduled for Aug. 2.

Envision is a Nashville-based provider of physician-led services and post-acute care and ambulatory surgery services. The company filed bankruptcy on May 15 under Chapter 11 case number 23-90342.

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