New Bankruptcy Opinion: IN RE ST. JUDE NURSING CENTER, INC. – Bankr. Court, ED Michigan, 2016





In re: ST. JUDE NURSING CENTER, INC., Chapter 11 Debtor.

Case No. 16-42116.

United States Bankruptcy Court, E.D. Michigan, Southern Division.

June 21, 2016.

ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT

THOMAS J. TUCKER, Bankruptcy Judge.

On June 17, 2016, the Debtor filed a plan and disclosure statement, in a document entitled “Debtor’s Combined Plan of Liquidation and Disclosure Statement” (Docket # 121). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document (“Disclosure Statement”). The Court notes the following problems, which Debtor must correct.

First, in Paragraphs 2.1.2 and 2.1.3 of the Plan on pages 14-15 and in Paragraph 5.1.2 of the Plan on page 16, Debtor must change “Real Property Proceeds” to “Real Property Proceeds to the Class IV Claimant” (see Paragraph 1.1.3 of the Plan on page 13).

Second, in Paragraphs 1.1.3 and 2.1.3 of the Plan on pages 13-15, Debtor must change “First Priority Tax Lien” to “First Position Tax Lien,” which is a tern defined in Paragraph 1.2.44 of the Plan on page 6.

Third, Debtor must treat each of the following claims in a separate class: the secured claim of Riverbank (currently being treated in Paragraph 7.1.1 of the Plan on page 17); and the secured claim of the State of Michigan UIA (currently being treated in Paragraph 7.1.2 of the Plan on page 17).

Fourth, in Paragraph IV.D of the Disclosure Statement on pages 12-13 regarding “Secured Creditors,” Debtor must add the Wayne County Treasurer, Riverbank, and the State of Michigan UIA.

Accordingly,

IT IS ORDERED that no later than June 23, 2016, Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.

IT IS FURTHER ORDERED that no later than June 23, 2016, Debtor also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to “Debtor’s Combined Plan of Liquidation and Disclosure Statement,” filed June 17, 2016.

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