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Bridge Diagnostics’ post-confirmation update shows the reorganized debtor is still in plan-compliance mode but has not yet converted that into creditor-payment momentum. The debtor says it is compliant with the Second Amended Plan and confirmation order, has paid about $35,000 to Subchapter V trustee Robert Goe for allowed fees and expenses, but has made no payments to Jason Hansen on either his prepetition security interest or the postpetition DIP loan, according to the Post-Confirmation Status Report.
The operational signal is tighter liquidity than projected: Bridge says actual operating realizations are below forecast, so it is maintaining “relatively light operations” to preserve cash. The near-term funding path is collections, not new financing: special counsel Crown Medical Solutions is pursuing outstanding accounts receivable, and Bridge expects enough settlements within 30 to 60 days to pay pre- and post-administrative expenses in full and provide operating capital. That makes AR realization the next practical test of whether the confirmed Subchapter V plan can perform without renewed pressure from Hansen or administrative creditors.
The court confirmed Bridge Diagnostics’ Second Amended Chapter 11 Plan under Subchapter V cramdown provisions, moving the COVID-receivables case into post-confirmation implementation less than six months after the March 29 petition. The order confirmed the September 10 plan, vested estate property and avoidance claims in the reorganized debtor, authorized the Disbursing Agent to make plan distributions, and provided a discharge of pre-confirmation debt on the effective date, subject to statutory exceptions source filing. The confirmed plan reported about $14.9 million in assets against $11.8 million in liabilities and kept Crown Medical Collections in the center of the recovery strategy for COVID-related accounts receivable source filing.
The order also resolved a contested secured-claim issue by reclassifying Ross Blackburn’s asserted secured claim as a Class 3 general unsecured claim after finding the alleged security interest was unperfected and avoidable under sections 544, 550 and 551 source filing. That ruling pushed a listed $2.6 million Blackburn claim into the unsecured pool, where general unsecured creditors share pro rata, while the plan preserved separate buckets for secured claims and the BlueCross priority claim source filing.
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