Res 1993-185 - Laserfiche WebLink

Home Browse Search

I roc- . ~ , II. OVERVIEW OF THE PLÃN . The Plan provides for the payment of all claims against the Debtor in full, with the exception of the Claim of the Internal Revenue Service for the alleged joint and several obligations of the Debtor, its parent corporation, Healthcare International, Inc. ("Healthcare") and the. affiliate debtor corporations. The Debtor has proposed a compromise of the IRS Claim based on the inability of the Debtors to pay the approximately $29 million Clqim asserted by the IRS. Representatives of the Plan Proponents and the IRS have met to discuss the compromise and, based on those discussions, the Plan -~ Proponents believe that they will receive the requisite approvals for the treatment of the IRS Claim by the confirmation date. All Administrative Expense and Priority Claims, other than Priori ty Tax Claims, against the Debtor will be paid in full on the Effective Date or as agreed upon between the Claimants and the Debtor. The Debtor will contribute toward the payment of the IRS Claim by becomming jointly and severally liable for a note in the amount of $3 million payable to the IRS over six years. Holders of Allowed Unsecured Claims of $150.00 or less will be paid - in full on the Effective Date of the Plan. Holders of all other Allowed Unsecured Claims will receive a distribution of 25% of the amount of their Allowed Claim on the Effective Date and will receive the remainder in semi-annual installments over a three year period. Inteçest will accrue on the unpaid portion of an Allowed Unsecured Claim at the rate of 8% percent per annum. The payment of Allowed Unsecured Claims in installments is dictated by the terms. of the Debtor's proposed compromise of the IRS Claim. By statute, the IRS Claim has a higher priority of distribution than that of Unsecured Claims. Therefore, unless the IRS Claim is compromised, it is unlikely that holders of Unsecured Claims would receive a significant, if any, distribution in this case. ! III. REPRESENTATIONS HealthVest and the Debtor submit this Disclosure Statement under Bankruptcy Code § 1125 (the "Disclosure Statement") in connection with the solicitation of acceptances of the Plan. Capitalized terms used herein, if not separately defined, have the meanings assigned to them in the Plan or in the Eankruptcy Code. All persons receiving the Disclosure Statement and Plan are urged to review fully the provisions of the Plan and all attached appendices and exhibits, in addition to reviewing this Disclosure Statement. - 2. - a-201SS