Medical Practice Owner Hygea Wins Bankruptcy Plan Approval

Physician and medical practice owner Hygea Holdings Corp. secured bankruptcy court approval of its reorganization plan, which gives ownership to secured lenders and creates a trust for unsecured creditors.

Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware approved the plan at a telephone hearing Friday after limiting liability releases that were opposed by both a creditor and the Justice Department’s bankruptcy watchdog.

The plan was based on a “global settlement” between Hygea, secured lenders Bridging Income Fund LP and Centurion Asset Management Inc., and the committee of unsecured creditors.

Under the plan, Bridging will ...