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.
The Lowenstein team includes Joseph J. DiPasquale, Robert M. Hirsh, Rachel Maimin, Eric R. Suggs, John P. Schneider, Phillip Khezri, Colleen M. Maker, and Jeremy D. Merkin.
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Lowenstein Sandler is a national law firm with over 350 lawyers based in New York, Palo Alto, New Jersey, Utah, and Washington, D.C. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.
