Court confirms GreenFields plan after FSO-led restructuring
Friendship Village of Mill Creek, NFP, d/b/a GreenFields of Geneva, filed chapter 11 on April 20, 2017 as a nonprofit health-care business operating a continuing care retirement community in Geneva, Illinois, reporting about $56.9 million of assets and $113.0 million of liabilities. Early in the case, the debtor sought authority to sell substantially all assets, with UMB Bank, N.A. as bond trustee owed roughly $97.7 million secured by substantially all debtor assets, and Friendship Senior Options, NFP serving as the $52.8 million initial bidder in a process that could proceed through a sale order or plan source filing source filing.
The court confirmed the amended joint plan on October 27, 2017, after FSO emerged as the highest bidder and co-sponsored a reorganization funded by a $52.8 million payment to the bond trustee through new Illinois Finance Authority bonds, a $5.0 million FSO equity contribution, cash on hand, and resident entrance-fee escrow funds. The plan estimated about a 56% recovery for Series 2010 bond claims, paid general unsecured creditors from unencumbered assets, preserved FSO as sole member, and assumed residency agreements and the CMS provider agreement to keep the campus operating source filing source filing source filing.
Voting support was strong enough to lock in the consensual path: Class 1 bondholders accepted with 323 ballots representing $78.909 million in par amount against 48 ballots representing $6.11 million, while Class 4 general unsecured creditors accepted with 4 ballots totaling $20,004.92 and no rejecting votes source filing.
