Buckingham Senior Living Chapter 11 plan effective as of Nov. 30

By Sarah Lizee

Olympia, Wash., Dec. 3 – Buckingham Senior Living Community, Inc.’s Chapter 11 plan of reorganization went into effect on Tuesday, according to a notice filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas, according to a minute entry.

The plan was confirmed on Nov. 9, as previously reported.

The company has entered into an agreement with 69% of holders of its bonds regarding a restructuring transaction.

Through the restructuring, UMB has agreed to defer payment of its pre-petition secured claim to repayment of the resident refund obligations for a period of up to five years.

UMB will provide up to $28.5 million in new money upon the effective date and will exchange pre-petition bonds for $140.23 million of new 2021B bonds, with the balance being waived in the amount of about $18.8 million.

Through the restructuring, the company intends to pay all resident obligations in full, though some may be paid over an extended time period. The debtor also plans to pay all trade claims in full.

Under the plan, all allowed administrative claims, DIP facility claims, allowed priority tax claims, allowed non-priority tax claims, allowed miscellaneous secured claims, allowed trade claims and allowed charter refund obligation claims will be paid or satisfied in full.

Holders of pre-effective date refund queue claims and general unsecured claims will receive a pro rata share distribution from any litigation trust distributable cash.

Holders of pre-effective date refund queue claims will also receive a pro rata share of an initial queue payment, and after the effective date, so long as operating cash exceeds 135 days cash on hand, 100% of the reorganized debtors’ excess cash until their claims are paid in full, which is anticipated to be five years from the effective date.

The Houston-based owner and operator of a 495-unit continuing care retirement community filed bankruptcy on June 25 under Chapter 11 case number 21-32155.

© 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.