Monroe Hospital gets court support on plan of liquidation statement

By Kali Hays

New York, Dec. 29 – Monroe Hospital, LLC received approval of the disclosure statement on its proposed plan of liquidation, according to a Dec. 29 entry with the U.S. Bankruptcy Court for the Southern District of Indiana.

A hearing on confirmation of the plan is scheduled for Feb. 11.

As previously reported, Monroe said the sale of its assets is scheduled to close on Dec. 31.

The proposed plan is designed to facilitate the liquidation of the company’s estate and the distribution of assets to creditors.

Treatment of creditors will include the following:

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

• MPT Bloomington, LLC and MPT Development Services, Inc.’s secured claim will be partially assumed and paid as part of the purchase price for Monroe’s assets.

An MPT deficiency claim will be subordinate to general unsecured claims, and the company said there will not be enough trust assets remaining to pay it;

• Holders of general unsecured claims will receive a share of trust assets remaining after all administrative and priority claims have been paid in full; and

• All equity interests will be cancelled.

Monroe, a Bloomington, Ind.-based hospital operator, filed for bankruptcy on Aug. 8. Its Chapter 11 case number is 14-07417.

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