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Health Plan Operator Sharity Can Solicit Bankruptcy Plan Votes

Oct. 13, 2021, 8:30 PM

Sharity Ministries Inc., a nonprofit that offered health insurance-like products under its Christianity affiliation, won court approval to solicit creditor votes on its plan to wind down in bankruptcy following mounting legal troubles over its medical cost-sharing arrangement.

Sharity can distribute to creditors its plan to create a liquidation trust for their benefit, Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware ruled during a virtual hearing Wednesday.

Under the plan, members and general unsecured creditors are projected to recover up to 10% on their claims, which are estimated to exceed $300 million.

The ...

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