The Chapter 11 cases of SC Healthcare Holding, LLC and its affiliated Petersen Health Care debtors have concluded in a confirmed and effective liquidating plan, with the Combined Disclosure Statement and Chapter 11 Plan of Liquidation confirmed on June 11, 2025 and made effective on August 7, 2025.
The Debtors — a Peoria, Illinois-based platform operating more than 90 skilled nursing and senior care facilities with roughly 6,800 licensed beds across Illinois, Iowa, and Missouri, generating over $339.7 million in annual revenue and employing nearly 4,000 people — filed their Voluntary PetitionDkt. 1 on March 20, 2024. Filing was driven by a compound liquidity shock: an October 2023 ransomware attack that destroyed billing and revenue-cycle records, the February 2024 Change Healthcare cyberattack that further disrupted Medicaid reimbursements, structural post-pandemic occupancy declines, labor cost inflation, and a legacy Illinois Medicaid reimbursement backlog. In the first-day Declaration of Chief Restructuring Officer David R. CampbellDkt. 44, the enterprise reported approximately $295.9 million in prepetition indebtedness — a first-lien term-loan stack led by the Column/Sector facility ($64.6 million) and the X-Caliber facility ($34.5 million), a structurally subordinate GMF second-lien facility (~$26.4 million), roughly $45.7 million of HUD-insured mortgages, local bank loans, and an eCapital revolver — against only about $1.1 million in unrestricted cash.
To stabilize operations, the Debtors obtained a combined DIP and cash collateral facility from JMB Capital Partners totaling $45 million (after an interim $15 million tranche), which was drawn in full and paid off on December 7, 2024. The restructuring then ran through Section 363 asset sales rather than a going-concern reorganization: substantially all operating assets were sold in four transactions to HP Developers, LLC, Bank of Farmington, Hickory Point Bank & Trust, and Petersen Acquisitions, LLC for aggregate proceeds of approximately $117.95 million.
With operations wound down, the Combined Disclosure Statement and Chapter 11 Plan of LiquidationDkt. 1410 substantively consolidates the 141 debtor entities and was advanced with the support of the Official Committee of Unsecured Creditors. The plan impairs the secured classes — projecting recoveries of roughly 55% for the Column/Sector claim, 1% for the GMF second-lien claim, and 0% for the X-Caliber claim, with other first-lien lender recoveries varying by collateral — while leaving Other Secured and Priority claims unimpaired at 100%, and general unsecured claims impaired and sharing residual liquidation value. Following the May 30, 2025 combined hearing, the confirmation order was entered June 11, 2025, and effectiveness achieved August 7, 2025, moving the case into plan administration and liquidating-trust distributions.
