GEM Hospitality filed with the U.S. Bankruptcy Court a motion (i) seeking approval of bidding, auction and sale procedures related to the sale of all or substantially all of its assets and (ii) requesting an expedited hearing in respect of the motion to be held on June 27, 2018. The motion explains, “The Debtors seek to establish procedures under which INDURE will submit an opening credit bid in the amount of $38,418,373, including additional amounts INDURE may credit bid at the Auction….The Debtors request that a hearing on this Motion be set for June 27, 2018 at 10:00 a.m. at which time the Court has already scheduled a hearing in these Cases on other pending matters.” The following general timeline is fixed: The Bid Deadline is September 7, 2018, the Auction is to be held on September 11, 2018 and the sale hearing is to be held on September 14, 2018 (with objections due by September 13, 2018).
Orianna Health Systems filed with the U.S. Bankruptcy Court a motion for the conditional approval of its Disclosure Statement and a motion to supplement order approving the Disclosure Statement, determining dates, procedures, and forms applicable to solicitation process, establishing vote tabulation procedures, and establishing objection deadline and scheduling plan confirmation hearing. The motion explains, “On June 19, 2018, the Debtors conducted an auction for the sale of its Restructuring Portfolio. After several rounds of bidding, the Plan Sponsor submitted the winning bid, comprising several key improvements upon its original stalking horse bid. For purposes of this Motion, the most significant change was the Plan Sponsor’s agreement to establish and fund a Tort Claimants Trust (the ‘Tort Trust’) in the amount of $2 million. As a result, the Debtors amended their chapter 11 plan [Docket No. 615] (the ‘Third Amended Plan’) to include a new class of Tort Claims (Class 4.A) separate and apart from the class of General Unsecured Claims (Class 4).” The Court scheduled a June 27, 2018 hearing to consider the motion.
Orianna Health Systems filed with the U.S. Bankruptcy Court a Third Amended Joint Plan of Reorganization and a related Disclosure Statement. According to the Disclosure Statement, “The Successful Bid by the Plan Sponsor includes the following key components to be consummated pursuant to the Stock Purchase Agreement and the Plan: cash in the amount of $195,000,000; a 7-year, $30,000,000 subordinated note, with 6% cash interest payable, with principal payments beginning at the end of year 3 based on 15-year amortization; assumption of the Debtors’ paid time off (PTO) obligations in connection with employees of the Restructuring Portfolio; approximately $18,000,000 in affiliated entity claims will either be assumed by the Plan Sponsor or otherwise waived; agreement to provide transition services to the estates by the Plan Sponsor and/or its designees at a discounted rate for a period of six (6) months; establishing a tort claimants trust and funding the trust in the amount of $2,000,000, including provision of services to administer the trust and resolve the claims at no cost to the Debtors’ estates or the tort claimants’ trust (other than those costs required to litigate the underlying claims, including costs and expenses related to expert witnesses, estimation hearings, or trial); the Reorganized Debtors will be capitalized with not less than $25,000,000 of equity (previously $20,000,000); and the removal from the Stock Purchase Agreement of the concept of a Financing Contingency Termination Fee (i.e., $4,000,000 deposit is ‘hard’)….On the Effective Date, the Plan Sponsor, through one or more of its Affiliates, shall enter into the Transition Services Agreement with the Distribution Trust for a period of 180 days (or such lesser time as determined by the Distribution Trust). The compensation charged by the Plan Sponsor or its Affiliates under the Transition Services Agreement shall be $1,500,000 in the aggregate for such 180-day period.” A Plan confirmation hearing has been scheduled for July 16, 2018.
GenOn Energy filed with the U.S. Bankruptcy Court a motion to approve a compromise and settlement agreement. The settlement agreement notes, “The Kansas and Missouri Settlement Agreement provides in key part as follows: the Proofs of Claim are allowed in an aggregate amount of $3,850,000 (the ‘Settlement Amount’)….Counsel for the Named Plaintiffs seek reimbursement of five percent of their out-of-pocket expenses advanced to date in the MDL Litigation and this Bankruptcy proceeding, not to exceed $425,000. Counsel for the Named Plaintiffs further seek approval of their attorneys’ fees based on the contingency fee contracts with the Named Plaintiffs, not to exceed 32% of the aggregate settlement amount.” The Court scheduled a July 13, 2018 hearing to consider the settlement agreement.
The U.S. Bankruptcy Court issued an order approving an Orexigen Therapeutics stipulation amending for the fourth time Section 42 of the final DIP Order (Docket 408 and dated June 22, 2018) and extending the challenge period through June 25, 2018. The stipulation notes, “Upon consideration of the Stipulation, certification and all related pleadings, it appeared that the relief requested in the stipulation is in best interests of the Debtor’s estate, their creditors and other parties; notice of the Stipulation being sufficient under the circumstances and there being no need for further notice, and the Court, upon due deliberation, having found that cause exists to approve the Stipulation.”