El Paso Children’s Hospital committee objects to disclosure statement

By Mark Reccek

Bethlehem, Pa., Oct. 26 – El Paso Children’s Hospital Corp.'s official committee of unsecured creditors objected to the company's amended disclosure statement, according to an Oct. 23 filing with the U.S. Bankruptcy Court for the Western District of Texas.

The committee argues the proposed amended disclosure statement contains no discussion of timing or method of transfer of the plan deposit from the court's registry to the reorganized debtor.

Specifically, the committee proposes language to make the timing of payments more consistent across all classes of allowed claims. Such language will clarify that the plan deposit will remain in the court registry until the claims become allowed claims, at which time the reorganized debtor may draw against the funds to make distributions, the committee said.

"The committee believes it is in the best interests of the reorganized debtor and all claimants if part of the plan deposit simply remains in the court's registry for disputed claimants," the motion said.

Based in El Paso, El Paso Children’s Hospital provides pediatric patient care, research and education services. The hospital filed for bankruptcy on May 19 under the Chapter 11 case number 15-30784.

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