New Hampshire Hospital Group’s Bankruptcy Wind-Down Plan Approved

A bankrupt New Hampshire hospital group won approval to wind down and partially pay back unsecured creditors and the federal government.

LRGHealthcare’s bankruptcy estate, winding down under the name HGRL, will create a liquidating trust and distribute proceeds from a $30 million sale of its hospital and medical care businesses, according to its Chapter 11 plan.

The U.S. Housing and Urban Development Department, which is the largest creditor in the case, will receive 88.5% of a roughly $7 million pool of proceeds, according to the plan.

The remainder will be reserved for general unsecured creditors, which are slated to recover ...