Quincy Medical Center liquidation plan will be confirmed when tweaked

By Lisa Kerner

Charlotte, N.C., Nov. 16 - Quincy Medical Center, Inc.'s liquidation plan will be confirmed once a few changes are made as recommended by the judge prior to Nov. 21, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

Specifically, the names of the creditor's committee or officers, directors and others listed in certain clauses must not be included in the definition of released parties in the debtors' releases, and the third-party releases must be limited to those who actually submitted ballots accepting the plan.

The plan hearing was held Nov. 8, and the company's disclosure statement was approved on Oct. 7.

As previously reported, the company said that, in connection with the plan, it is selling substantially all of its assets to Steward Medical Holdings Subsidiary Five, Inc.

A fixed amount of cash proceeds, plus some unliquidated causes of action, will be transferred to a liquidation trust for the benefit of general unsecured creditors.

Treatment of creditors will include the following:

• Holders of administrative claims will be paid in full in cash;

• Holders of bondowner secured claims will receive Quincy's net estate assets;

• Holders of other secured claims will receive either the collateral securing their claims, cash equal to the value of the collateral or other treatment that leaves the claims unimpaired;

• Holders of general unsecured claims will receive a share of 100% of the liquidation trust assets; and

• Holders of subordinated claims will receive no distribution.

Quincy Medical Center filed for bankruptcy on July 1. Its Chapter 11 case number is 11-16394.

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