Nursing Home Biz Cleared To Tap Into $5M Loan In Ch. 11

Law360 (March 3, 2021, 8:07 PM EST) -- Affiliates of nursing home business Consulate Health Care were cleared on Wednesday to tap into a $5 million post-petition loan as they move forward with plans to sell assets after being plunged into Chapter 11 in Delaware by a roughly $258 million False Claims Act judgment.

During a virtual hearing, U.S. Bankruptcy Judge John T. Dorsey gave the go-ahead for debtor CMC II LLC and affiliates to access $1 million of a $5 million in debtor-in-possession loan from CPSTN Operations LLC, pending a final hearing on the total post-petition financing package.

"I look forward to getting the [certification of counsel on...

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