Nursing Home Operator CMC II Approved to Liquidate After Sale

Bankrupt nursing home operator CMC II LLC won court approval of its liquidation plan that shifts most obligations to pay creditors to the company’s lender as part of an asset sale.

Under the plan, approved Friday, the U.S. government will get about 1.31% of a $258 million False Claims Act judgment for improper Medicare and Medicaid billing. The individual who brought the FCA lawsuit on the government’s behalf stands to recover about 4.7% of $24 milliion in expense claims against CMC, according to the plan disclosures.

CMC and five affiliates filed Chapter 11 in March after a federal district ...