Christ Hospital disclosure statement approved; plan hearing June 3

By Caroline Salls

Pittsburgh, April 23 - Christ Hospital and its official committee of unsecured creditors received court approval of the disclosure statement for their joint plan of liquidation, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The plan confirmation is scheduled for June 3.

As previously reported, the plan is based on a settlement with the Pension Benefit Guaranty Corp.

PBGC settlement

Christ Hospital said PBGC filed more than $160 million in claims against its estate in connection with the hospital's failure to make contributions to its pension plan and the liabilities assumed by PBGC as a result of the termination of the pension plan.

Because a $33 million PBGC secured claim far exceeded the remainder of asset sale proceeds, the hospital said the agency's consent was required to allow the payment of at least administrative and some priority claims and to allow Christ Hospital to stay in Chapter 11 and have on opportunity to propose a plan of liquidation.

PBGC gave that consent and received a payment of $3.5 million at the time of the sale closing in partial satisfaction of its claims.

Under the settlement, PBGC agreed to accept $4 million in addition to the previous payment in full satisfaction of its claims.

A liquidating trust will be established under the proposed plan. A trustee will liquidate the hospital's assets and distribute the proceeds to creditors.

Creditor treatment

Treatment of creditors will include the following:

• Administrative expense claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• The PBGC will receive its subsequent settlement payment;

• Holders of secured claims of other lienholders will either have their claims reinstated, will retain a lien and receive deferred cash payments, will receive the collateral securing the claim or will be paid in full in cash; and

• Holders of general unsecured claims will receive a share of money to be distributed from a general unsecured creditor account.

Jersey City-based Christ Hospital filed for bankruptcy on Feb. 6, 2012. Its Chapter 11 case number is 12-12906. Calpine launches $1.06 billion term loan at Libor plus 250-275 bps

By Sara Rosenberg

New York, April 23 - Calpine Construction Finance Co. LP launched with a call on Tuesday its $1,055,000,000 seven-year term loan B with price talk of Libor plus 250 basis points to 275 bps with a 0.75% Libor floor and an original issue discount of 993/4, according to a market source.

The loan has 101 soft call protection for six months, the source said.

Goldman Sachs & Co. is the left lead on the deal.

Proceeds will be used to redeem the company's 8% senior secured notes due 2016.

Calpine Construction is a subsidiary of Calpine Corp., a Houston-based power producer.

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