SC Healthcare Holding, LLC and 140 affiliated debtors, one of the largest nursing home and senior care operators in the Midwest with more than 90 facilities, approximately 6,796 beds, and nearly 4,000 employees across Illinois, Missouri, and Iowa, filed for Chapter 11 protection on March 21, 2024 in the District of Delaware (Case No. 24-10443) before Judge TMH. The company faced cascading distress from the 2015-2017 Illinois Medicaid reimbursement backlog with accumulated unreimbursed costs, structural post-pandemic occupancy declines, labor cost inflation, and devastating cyberattacks: an October 2023 ransomware attack that destroyed business records and a February 2024 Change Healthcare attack that delayed claims processing. The Debtors obtained $45 million in DIP financing from JMB Capital Partners Lending, LLC. Substantially all assets were sold pursuant to 363 sales orders entered July 11, 2024 with an APA dated June 26, 2024. A combined disclosure statement and chapter 11 plan of liquidation were confirmed June 11, 2025. General unsecured creditors (Class 4) are projected to recover 0-5%. Equity interests receive no distribution.
