Cases
CourtFilingsPetition dateMore filters
Lutheran Life Communities and affiliated debtors filed a second amended joint Chapter 11 plan that moves the case from operating protection into a negotiated balance-sheet restructuring. The Second Amended Plan would cancel the 2019 bond documents and replace them with new Series 2026 Bonds, alongside amended Mission Investment Fund line-of-credit documents. The plan says the restructuring is backed by an October 10, 2025 plan support agreement with holders of at least 90% of the Series 2019A Bonds.
The creditor economics are now concrete enough to track: general unsecured creditors would receive interests in an Unsecured Creditor Trust funded with $1.4 million, retained causes of action, leftover cure reserve amounts, and remaining insurance-trust assets after insured tort claims are resolved. The plan also sets aside a $375,000 cure-cost reserve for assumed contracts and preserves treatment mechanics for resident refund obligations rather than simply treating them as disputed because they were scheduled as contingent or unliquidated. The plan supplement deadline is February 3, 2026, making the next gating items disclosure, solicitation, and confirmation rather than first-day liquidity or case stabilization.
The case initially ran on a dual-track sale and restructuring timeline. In May 2025, the court approved procedures for a sale of substantially all assets or another transaction, with a July 1 stalking-horse deadline, October 14 qualified-bid deadline, October 20 auction, November 12 sale hearing, up to $500,000 of expense reimbursement, a breakup fee of up to 3% of purchase price, and express credit-bid rights for the Master Indenture Trustee. source filing
By September, LHSA and LHA named AE CCRC LLC as stalking horse for substantially all Lutheran Home assets at an $85 million purchase price, including $80.5 million of cash, a $2.55 million breakup fee, and $250,000 of expense reimbursement. A month later, the debtors indefinitely adjourned the auction schedule after signing a plan support agreement with UMB Bank, holders of at least 90% of the Series 2019A bonds, and Old National Bank on the Series 2019B debt, shifting the case toward a bond-exchange plan with January 23, 2026 confirmation and February 6, 2026 effective-date milestones; if the PSA failed, the auction could be restarted. source filing source filing
Loading defined terms…