Epworth Villa modified plan of reorganization receives court approval

By Mark Reccek

Bethlehem, Pa., Dec. 16 – Central Oklahoma United Methodist Retirement Facility, Inc., which does business as Epworth Villa, received court approval of its second modified plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Western District of Oklahoma.

Treatment of claims will include the following:

• Administrative claims, tax claims and priority claims will be paid in full in cash;

• The rights of indenture claimholders will be unaltered;

• Other secured claims will be reinstated, or holders will receive the collateral securing the claims;

• Holders of insured claims will be allowed to seek liquidation of their claims and collect and satisfy the claim from indemnity insurance policy;

• Holders of unsecured claims will be paid either the allowed or estimated amount of their claims in cash with post-bankruptcy interest; and

• If all voting claims classes accept the plan, the interest holder will retain its interests. If the voting claimants do not accept the plan, the interest holder will receive no distribution.

As previously reported, under the modified plan, Epworth Villa continues to propose to continue to pay its obligations under the bond documents in the ordinary course of business, which will allow the trustee to make regular payments to bondholders.

Epworth Villa, an assisted living facility in Oklahoma City, filed for bankruptcy on July 18, 2014. The Chapter 11 case number is 14-12995.

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