Certain convenience class claims from a prior bankruptcy case of Senior Care Centers, LLC (“SCC”) are being treated in SCC’s pending subchapter V bankruptcy case.  However, the amount you see listed on your ballot is your pro rata share of the full amount that was available under the previously confirmed chapter 11 plan of SCC.  Specifically, in the prior case, the confirmed plan provided for $500,000 to be distributed to all convenience class claims that were allowed.  Your claim was not disallowed, and therefore is being treated under SCC’s currently proposed subchapter V plan of reorganization.  The applicable definition under the proposed plan, which you’re entitled to vote to accept or reject, is as follows:

“Allowed Prior Case Convenience Class Claim” means any Convenience Class Claim, as that term is defined in the Third Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code that was confirmed in the Prior Case [Prior Case Docket No. 2053] (the “SCC 1 Plan”) each of which is hereby Allowed in the Subchapter V Cases for purposes of this Plan in an amount equal to the product of (x) the result of (A) the Allowed amount of such Convenience Class Claim in the Prior Case divided by (B) the aggregate amount of all Allowed Convenience Class Claims in the Prior Case.

SCC understands that allowed convenience class claims that remain unpaid have claims against its current bankruptcy estate, and as a result is proposing to treat those claims in its new subchapter V plan.  Because allowed convenience class claims in the subchapter V case will be paid over time, pursuant to a payment plan, such claims are considered “impaired” and that is why you received a ballot and a chance to vote on the subchapter V plan.