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UNITED METHODIST: U.S Trustee Objects to Disclosure Statement

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Nancy J. Gargula, the United States Trustee for Region 10 (“U.S. Trustee”), for her objection to The United Methodist Village, Inc. and Village Health Care Management, LLC’s Amended Disclosure Statement.

The U.S. Trustee asserts that the Disclosure Statement fails to provide adequate information concerning Debtor’s gross income and expenses.

According to the U.S. Trustee, an analysis of the monthly operating reports actually filed with the Court through and including the end of June 2020, reflect that the Debtors have failed to file the March and April 2020 Reports despite having filed the May 2020 monthly operating report.

The U.S. Trustee complains that the Amended Disclosure Statement fails to clearly identify what particular secured creditors will be paid from the proceeds generated by the sale of the various pieces of real estate.

The U.S. Trustee points out that the Amended Disclosure Statement fails to provide adequate information concerning a timeline as to when the sale of the real estate may occur and when a distribution will be available to the unsecured creditors following the sale.

About The United Methodist Village

The United Methodist Village, Inc., a non-profit nursing home in Lawrenceville, Ill., filed for bankruptcy protection under Chapter 11 (Bankr. S.D. Ill. Case No. 19-60046) on Feb. 22, 2019. In the petition signed by Ashli Wesley, administrator, Debtor disclosed $13,779,571 in assets and $7,164,533 in liabilities. Judge Laura K. Grandy oversees the case.

The Debtor has tapped Dent Law Office, Ltd. as bankruptcy counsel; Meyer Capel, A Professional Corporation as special counsel; and Svihla & Associates CPAs, LLC, as forensic accountant.

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