Nursing-home operator Orianna Health Systems won final court approval of its chapter 11 plan after reaching a settlement that ends a months-long legal battle with its landlord, WSJ Pro Bankruptcy reported. During a hearing yesterday at the U.S. Bankruptcy Court in Dallas, Judge Harlin DeWayne Hale said that he was ready to sign off on the plan, which will keep Orianna alive solely for the purpose of winding down what remains of the business and distributing its assets to creditors. Orianna, once the operator of more than 40 nursing homes in seven states, filed for bankruptcy in March with a prearranged restructuring deal that was initially supported by its landlord. The case was supposed to be opened and closed quickly, with a final hearing on the proposed plan originally set for July. But a clash over how much of the plan’s expenses would be borne by Omega Healthcare Investors Inc., the publicly traded real-estate investment trust that is Orianna’s landlord, caused the deal to fall apart, and the case devolved into a series of contentious courtroom conflicts. Under the settlement announced yesterday — a deal that resolves a number of outstanding disputes among Omega, Orianna and its unsecured creditors — Omega agreed to support the chapter 11 plan and will provide $7.4 million to help pay unsecured creditors. Lawyers for Orianna and its unsecured creditors have also each agreed to waive $300,000 in legal fees. Read more.
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