HCR ManorCare, Inc. commenced a chapter 11 bankruptcy case on March 4, 2018. It accompanied the filing with a “prepackaged” chapter 11 plan. The company has requested a hearing to approve that plan on April 12, 2018.
The debtor, through its operating subsidiaries, is a Toledo-based provider of short-term, post-hospital services and long-term care. Its operating subsidiaries have not filed for bankruptcy protection.
HCR ManorCare negotiated its reorganization plan with Quality Care Properties under a plan sponsor agreement with QCP, HCP Mezzanine Lender, LP and certain lessors. It has also negotiated a restructuring support agreement with Carlyle MC Partners, L.P., Carlyle Partners V-A MC, L.P., Carlyle Partners V MC, L.P., CP V Coinvestment A, L.P., CP V Coinvestment B, L.P. and MC Operations Investments, LLC. The primary features of the plan are:
- QCP will receive 100% of the stock of the Reorganized Debtor in full satisfaction of its Claims against the Debtor;
- No other creditors will be impaired;
- Equity holders will not receive distributions, but the company’s majority stockholders support the plan;
- HCR III, QCP and the company’s lessors will enter into a master lease amendment.
The case number is 18-10467.