Bankruptcy

A federal bankruptcy judge will hold a hearing later this month on appointing an independent trustee for Legacy Cares or dismissing the case.

The board is offering $2.4 billion to all bondholders while $8.5 billion of par value is outstanding.

The plan of adjustment hearing scheduled for late July will be postponed.

Board asks judge to exclude bondholders' expert testimony and reports from plan of adjustment hearing.

"Stakeholders believe the best solution is to utilize the bankruptcy process to run a marketing and sale process," Friendship Village of Schaumburg said in a statement.

Dismissal would ease approval of a the current proposed plan of adjustment.

The city north of Detroit says it can't afford to make good on a $24 million debt owed to the Great Lakes Water Authority and in the absence of state help has raised state-approved bankruptcy as an option.

The Chapter 11 filing follows defaults by nonprofit Legacy Cares on $284 million of mostly tax-exempt bonds sold through the Arizona Industrial Development Authority.

Analysts say the PROMESA bankruptcy law is more creditor friendly than how the judge in the PREPA case interprets it.

The ruling may open the way for approval of a payout to bondholders as small as 0.21%.

Revenue bonds sold in 2018 for the project would be paid over seven years at lower rates under the Chapter 11 exit plan for the Bridgemoor at Plano debt.

Complaints include assertions the plan is unconfirmable and that it fails to offer necessary information.

"This settlement offer allows you to settle for payment in the form of new bonds of approximately half your claims," the Puerto Rico Oversight Board said.

Christian Care Centers' bankruptcy liquidation plan leaves bondholders impaired after an asset sale raised only $44.25 million.

Texas trails only Florida for first-time payment defaults on bonds issued for senior health and living facilities for seniors since 2009, according to MMA data.

Leading Life Senior Living in 2020 defaulted on $30.275 million of bonds it sold in 2017 through the Oklahoma Development Finance Authority to purchase two memory care facilities.

The city has estimated liabilities of between $100 million and $500 million and assets of only between $10 million and $50 million, according to the filing.

The San Benito Health Care District board declared a fiscal emergency, a first step to declaring Chapter 9 municipal bankruptcy under California law.

They say the HTA employees group have failed to show any of the four conditions needed for a court to order a stay.

South Carolina-based Jasper Pellets borrowed $12.5 million in private activity bonds in 2018. A deal to settle the firm's Chapter 11 bankruptcy pays the debt.