December 3, 2021 – The Debtors notified the Court that their First Amended Plan of Liquidation had become effective as of December 3, 2021 [Docket No. 719] which was also the date upon which the Court issued its confirmation order [Docket No. 718].
On March 1, 2021, CMC II, LLC and five affiliated Debtors (dba Consulate Health Care, “CMC” or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 21-10461 (Judge Dorsey). At filing, the Debtors, who cited the impact of a final $257.7mn judgment in a long-running False Claims Act litigation relating to fraudulent Medicare and Medicaid billing, noted estimated assets between $100.0mn and $500.0mn; and estimated liabilities between $100.0mn and $500.0mn (including that $257.7mn FCA judgment). In a subsequently filed Schedule A/B [Docket No. 168], the lead Debtor noted $2.6mn of assets and $382.2mn of liabilities.
The Debtors were part of a larger group that operates 140 skilled nursing facilities across six states and does business as Consulate Health Care (“Consulate”); with the three Chapter 11 filers including CMC II, which provides back-office management services to Consulate facilities, and two of Consulate’s nursing facilities. The other 138 Consulate facilities were not debtors in these cases.
The Debtors were represented by (i) Chipman Brown Cicero & Cole, LLP as bankruptcy counsel, (ii) Alvarez & Marsal North America, LLC as financial...
Georgia Attorney General Chris Carr announced Tuesday that federal charges have been filed against a local doctor who allegedly submitted more than $4 million in false billings to Georgia Medicaid...