Quincy Medical Center files plan of liquidation, disclosure statement

By Caroline Salls

Pittsburgh, Sept. 9 - Quincy Medical Center, Inc. filed its plan of liquidation and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Massachusetts.

The company said it is selling substantially all of its assets in connection with the plan to Steward Medical Holdings Subsidiary Five, Inc. The sale could close as soon as Oct. 1, according to the disclosure statement.

Quincy said it is also seeking a court order allowing some sale proceeds to be used to pay a portion of the pre-bankruptcy indenture trustee claim at closing and to establish escrows of amounts distributable to other creditors and parties in interest under the plan.

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:

• 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.

The disclosure statement hearing is scheduled for Oct. 6.

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

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