Firm Confirms Chapter 11 Plan for Six Healthcare Companies and Related Real Estate Holding Company

July 18, 2018

On July 18, 2018, the Bankruptcy and Business Reorganization Section of the firm successfully obtained confirmation of the plan of reorganization for related healthcare companies including two home health agencies, a hospice agency, an assisted living facility, and a real estate holding company with commercial holdings across central Louisiana.  The hearing was held in Alexandria before Chief Judge John Kolwe of the United States Bankruptcy Court for the Western District of Louisiana.  The jointly administered case of Serenity Homecare, LLC, et al, involved seven different entities.  The negotiations involving the Plan involved five different banks, the Internal Revenue Service, and other creditors.  As a part of the reorganization effort, the firm represented Serenity Homecare in the sale of its north Louisiana location for one million dollars.  This sale provided liquidity which has allowed the plan to provide payment to unsecured creditors in full over time.
Confirmation of the plan in this case marks another huge success of the firm’s practice in the area of reorganization of distressed healthcare businesses.  As in a prior healthcare reorganization case this year, management is retaining ownership and control of the companies going forward.
Bradley L. Drell leads the firm’s Bankruptcy & Business Reorganization Section, and was joined by Heather M. Mathews and Chelsea M. Tanner in prosecuting the case.  B. Gene Taylor, III took the lead on the sale of the north Louisiana location, including drafting of the sale motion in the bankruptcy case and all transactional documents to close the sale.