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The court granted Midwest Christian Villages’ dismissal motion on an interim basis, shifting the cases from active Chapter 11 administration into a court-supervised winddown path. Under the dismissal order, the Washington Village Estates and Wabash Estates debtors may pay allowed estate claims without a plan, applicable debtors may pay allowed 503(b)(9) claims in full, and all distributions must still follow ordinary priority rules unless an impaired creditor consents.
The order sets the remaining professional-fee process: final fee applications are due May 18, 2026, with a June 17, 2026 hearing, funded from a $350,000 professional-fee reserve. It also authorizes a $900,000 reserve for remaining CRO costs and other Chapter 11 administrative expenses, directs remaining ERC credits and residual assets to the master trustee in partial satisfaction of $1.1 million of obligations, and permits state-law dissolution of the debtor entities. Final dismissal occurs automatically after the court approves final professional fees, while prior bankruptcy orders survive dismissal and the court retains jurisdiction over implementation and fee matters.
The court approved Midwest Christian Villages’ structured dismissal on an interim basis, with final dismissal to occur automatically after approval of final professional fee applications. The Structured Dismissal Order authorizes the Debtors to complete their wind-down, dissolve the entities, pay allowed claims in the Washington Village Estates and Wabash Estates cases without a plan, and pay allowed 503(b)(9) claims in full while preserving ordinary priority rules unless an impaired creditor consents otherwise.
The order closes out a sale-driven Chapter 11: the Debtors said all facility sales had closed, provider numbers and licenses had transferred, and the DIP financing had been satisfied, leaving a plan process too costly for estates with little or no unencumbered value. Under the approved framework, final fee applications are due May 18, 2026, with a June 17 hearing; a $350,000 professional-fee reserve and $900,000 administrative-expense reserve support remaining case costs. Residual assets, including ERC credits and leftover cash, will transfer to UMB Bank as Master Trustee in partial satisfaction of $1.1 million in secured obligations, as proposed in the Structured Dismissal Motion.
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