Senior Care’s Chapter 11 Plan OK’d, Gives Equity to Creditors

Senior Care Centers LLC, a bankrupt skilled nursing service provider, won approval of its reorganization plan giving equity to creditors.

The plan, approved Dec. 13 by Judge Barbara J. Houser of the U.S. Bankruptcy Court for the Northern District of Texas, creates a trust for the benefit of unsecured creditors, who asserted claims worth $20 million. The trust will receive 80% of new common stock and a note for $10 million.

Claims against Senior Care’s officers and directors will be transferred to the trust, which will be funded by $500,000.

Senior Care, which filed Chapter 11 in December 2018, said ...