Neighbors Legacy Holdings is in a confirmed liquidation posture: the court approved the debtors’ disclosure statement and confirmed their First Amended Joint Plan of Liquidation on March 22, 2019 through the confirmation orderDkt. 847. The case began on July 12, 2018, when the Neighbors enterprise and multiple affiliated emergency-center operators filed chapter 11 petitions, including the lead debtor’s first-day support record in the Shandler declarationDkt. 16.
The filing followed a failed expansion cycle in the freestanding emergency-center business. Neighbors had grown from a Houston physician-founded platform into a multi-entity network that at its peak operated 33 emergency centers across three states, financed with more than $110 million of secured bank debt. By the petition date, the company had contracted to 22 Texas emergency centers after closing 13 underperforming sites and abandoning 8 planned locations, while facing heavier competition, deteriorating reimbursement from insurers, and long-term lease obligations that the business could no longer support. The Shandler declarationDkt. 16 ties the liquidity pressure to reduced or denied payor claims, a roughly 36% average collection rate in 2017, substantially all assets pledged to prepetition lenders, and about $90 million of future non-cancelable operating and capital lease obligations.
The restructuring path was built around preserving value through sales and then winding down. Before filing, Houlihan Lokey marketed the business to 127 potential buyers, produced five formal bids, and selected Altus Health Systems OPCO, LLC and Altus Health System Realty, LLC as stalking horse bidders for Houston assets, according to the . The plan phase then shifted the case from operating stabilization and asset monetization to estate administration: the debtors filed a on February 20, 2019, and the court confirmed that liquidation plan one month later in the .
