U.S. Bankruptcy Judge Karen B. Owens in the District of Delaware has confirmed the plan of reorganization in the Chapter 11 bankruptcy cases of medical practice owner Hygea Holdings Corp. (Hygea) and its affiliates. Lowenstein Sandler serves as counsel to the Official Committee of Unsecured Creditors (Committee) in the matter. Hygea and many of its affiliates filed for Chapter 11 protection in February 2020, asserting approximately $200 million in debt.
Judge Owens agreed to confirm the plan, pending amendments removing certain nonestate fiduciaries from the exculpation provisions. Additionally, a creditors’ trust will be formed for the benefit of unsecured creditors, which will include various causes of action, five percent equity in the reorganized Debtors, and funding for the trust. Lowenstein will subsequently represent the trustee of the creditors’ trust post-confirmation.