Center for Autism’s Chapter 11 plan effective as of Aug. 25

By Sarah Lizee

Olympia, Wash., Aug. 28 – The Center for Autism and Related Disorders, LLC’s Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on July 28, as previously reported.

At the conclusion of an auction held July 17, the debtors selected a bid package submitted by stalking horse bidder Pantogran LLC in conjunction with SH Varsity Acquisition Sub, LLC, Your Life ABA VA, LLC, Proud Moments MSO, LLC and Proud Moments Licensed Behavior Analysts PLLC for a total purchase price of $48.48 million as the successful bid for the assets.

Pantogran is led by Dr. Doreen Granpeesheh, founder and former chief executive officer of the debtors.

The debtors’ prearranged plan contemplates a waterfall distribution of the net cash proceeds and the wind-down of the post-sale estates.

According to the disclosure statement, other secured claims and other priority claims are unimpaired by the plan.

Holders of credit facility claims will receive their pro rata share of the sale and wind-down proceeds following payment in full of all senior claims, provided that any portion of a holder’s credit facility claim that isn’t fully satisfied will still constitute an allowed credit facility claim up to the value of any remaining credit facility collateral, and provided further that any portion of a claim that exceeds the value of the remaining collateral will constitute a deficiency claim and be treated as a general unsecured claim.

General unsecured claims will be discharged with no distribution.

No distributions will be made for any intercompany claims, existing parent interests or section 510(b) claims.

Intercompany interests will be addressed at the option of the wind-down debtors.

The Henderson, Nev.-based autism treatment provider filed Chapter 11 bankruptcy on June 11 under case number 23-90709.

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