A judge this week approved Gulf Coast Health Care’s amended Chapter 11 liquidation plan. This was the second amended joint plan submitted by the company after the rejection of the first.
The original plan was reportedly rejected for failing to fulfill its obligation to assign creditors’ claims against third parties.
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware approved the plan in an order signed June 27.
The Gulf Coast at one point had 28 NFCs in Florida, Georgia and Mississippi, but filed for Chapter 11 bankruptcy in October 2021, citing “significant fiscal challenges” stemming from the pandemic.
The majority of its portfolio, 24 facilities, was previously leased to certain indirect affiliates and subsidiaries of Omega Healthcare Investors (NYSE: OHI). The other four were leased to certain indirect affiliates and subsidiaries of Eagle Arc Partners LLC.
Omega sold 22 of its 24 previously leased and operated facilities on the Gulf Coast for more than $318 million in cash in May. Net cash proceeds, including related costs, were $304 million, a net gain of approximately $113.5 million.