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Haven Healthcare's creditors committee objects to motion for exclusivity extension
By Jennifer Lanning Drey
Portland, Ore., March 27 - Haven Healthcare Management, LLC's official committee of unsecured creditors objected to the company's motion to extend its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Connecticut.
As previously reported, the company wants to extend its exclusive plan filing period to 90 days from March 19 and the solicitation period to 90 days from May 18.
The committee argued that because Haven's planned asset sale is not expected to generate any proceeds for equity, Haven's equity owners have no stake in the outcome of the cases. However, the company's exclusivity has enabled them to remain in control and exclude the unsecured creditors from the plan process, they said.
"The unsecured creditors have a live stake in these cases and they must have an equal chance to propose a plan of reorganization," the committee said in the filing.
The committee said, at minimum, it should be allowed to concurrently file a plan of reorganization and solicit votes on the plan so it can propose an alternative plan before Haven's assets are sold.
The company's debtor-in-possession financing agreement requires it to secure an order approving the sale of its assets by May 30.
The assets being sold include six owned and 19 leased facilities located in five states in New England, plus all of the assets owned or leased by the company at the facilities and Haven's corporate headquarters, including inventory, accounts, furniture, fixtures, equipment and trade names.
Haven, a Middletown, Conn.-based nursing home operator, filed for bankruptcy on Nov. 20. Its Chapter 11 case number is 07-32722.
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