Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for El Paso Children’s Hospital Corp. > News item |
El Paso Children’s amended Chapter 11 reorganization plan effective
By Mark Reccek
Bethlehem, Pa., Jan. 11 – El Paso Children’s Hospital Corp.’s second amended joint Chapter 11 plan of reorganization became effective Jan. 8, according to a Friday filing with the U.S. Bankruptcy Court for the Western District of Texas.
Under the plan, all allowed claims will be paid in full, except as otherwise agreed by claimants, using funds held by the company, property to be vested in reorganized El Paso Children’s, a plan deposit and future operating revenue.
Holders of Texas Tech unsecured claims will receive an initial payment of $2 million on the initial distribution date or within 30 days of the effective date and receive payment of the remaining balance of the claim over a three-year period, with interest at the annual rate of 4.5%, in equal monthly payments beginning on or before 60 days from the effective date and each month after until paid in full.
In addition, an HHSC provider agreement will also be assumed. The company previously said it believes that no cure amount is due as a requirement of any assumption of the agreement.
The company’s agreements with University Medical Center of El Paso (UMC), including El Paso Children’s lease, will be assumed and modified to reduce base rent to $500,000 per month.
Any other executory contract, other than the Texas Tech and UMC agreements, will be deemed assumed.
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, 2015, under the Chapter 11 case number 15-30784.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.