CARE FOR LIFE: Unsecureds to Recover 1% in Over 50 Months in Plan

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Care for Life Home Health, Inc., filed an Amended Plan and an Amended Disclosure Statement on July 31, 2020.

Class 5 Non-priority unsecured creditors (convenience class). The amount due to the creditors in this class are too small to warrant monthly payments and will be paid in full on the effective date of the Plan in the amount of $796.18. This amount represents 1% of the amount owed to the Class 5 creditors.

Class 6 Non-priority unsecured creditors. This class shall be paid 1% of the amount owed to it over 50 months. This amounts to a total of $8,190 which is $163.81 per month for 50 months.

Class 7 Equity security holders of the Debtor. Since the Plan does not propose to pay all claims in full, either the equity holders cannot retain the equity in the Reorganized Debtor or new value must be contributed to the estate. The shareholders are choosing to add new value to the estate. To do so, the Debtor held an auction of the equity in the Reorganized Debtor where the current shareholders, creditors, and third parties had an option to bid on the equity in the Reorganized Debtor. This notice was published on May 20, 2020 and Mia Pacheco placed the first and only bid at $2,500 by placing the only bid, she shall have the right to become the owner of all of the equity interests of the Reorganized Debtor. In order to add sufficient value to the Reorganized Debtor, Mia Pacheco has agreed to contribute $1,000 per month of new value instead of a one time $2,500 payment.

A full-text copy of the Amended Disclosure Statement dated July 31, 2020, is available at from PacerMonitor at no charge.

Attorney for the Plan Proponent:

Ben Schneider
8424 Skokie Blvd., Suite 200
Skokie, IL 60077
Tel: 847-933-0300

About Care For Life Home Health

Based in South Elgin, Ill., Care For Life Home Health, Inc. filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 19-33113) on Nov. 21, 2019, listing less than $1 million in both assets and liabilities. Ben L Schneider, Esq., at Schneider & Stone, is the Debtor’s legal counsel.