New Chapter 11 Filing – CMC II, LLC and Affiliates

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On March 2, 2021, CMC II, LLC of Maitland, FL, along with several affiliates, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10461). CMC II is part of a family of companies owned by non-debtor LaVie Care Centers (d/b/a Consulate Health Care), which manages and operates 140 nursing facilities. The company reports $100 to $500 million in both assets and liabilities. According to the first day declaration, the filing was triggered by the entry of judgments against five debtors in a Federal False Claims Act suit. The debtors claim they lack the resources to satisfy those judgments.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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