Monroe Hospital confirmed plan of liquidation in effect as of March 5

By Kali Hays

New York, March 11 – Monroe Hospital, LLC’s Chapter 11 plan of liquidation took effect on March 5, according to a March 11 notice with the U.S. Bankruptcy Court for the Southern District of Indiana.

As previously reported, Monroe received confirmation of the plan on Feb. 11 and the sale of substantially all company assets to Prime Healthcare Services Monroe, LLC closed on Dec. 31.

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

Treatment of creditors includes 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, 2014. Its Chapter 11 case number is 14-07417.

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