Saint Vincents Catholic Medical files plan and disclosure statement

By Caroline Salls

Pittsburgh, April 25 - Saint Vincents Catholic Medical Centers of New York filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

According to the disclosure statement, the plan is based on various settlements with the company's largest secured, priority and/or unsecured creditors, as well as a global intercompany settlement reached with the official committee of unsecured creditors and other settling creditor parties.

Saint Vincents said the plan provides for a distribution of value to allowed claimholders through a transfer of assets and net sale proceeds to a liquidating trust, while also preserving ongoing value from the continued operation of healthcare services managed by the post-emergence company.

Treatment of creditors will include:

• Holders of priority non-tax claims will be paid in full in cash;

• Holders of other secured claims will receive either the collateral securing their claims, the value of the collateral or the net proceeds from the sale of the collateral;

• Holders of Sun Life secured claims and MedMal Trusts secured claims will receive distributions equal to the amount of specified property sale proceeds;

• Holders of general unsecured claims will receive a share of proceeds in an unsecured claims fund; and

• Holders of multi-employer pension fund subordinated unsecured claims will receive a share of the unsecured claims fund proceeds after all general unsecured claims are paid in full.

Saint Vincents, a New York-based health care system, filed for bankruptcy on April 14, 2010. Its Chapter 11 case number is 10-11963.

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