Genesis and Multicare revise reorganization.UNDER A REVISED JOINT REORGANIZATION plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. filed July 3 in U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware, Genesis Health Ventures Inc. and the Multicare Companies Inc. plan to issue about 93 percent of the new common stock to their senior secured creditors One who holds some special monetary assurance of payment of a debt owed to him or her, such as a mortgage, collateral, or lien. and about 7 percent of stock to their unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. . The two companies filed an earlier reorganization plan June 5, calling for a merger under the Genesis banner. Genesis and Multicare, both based in Kennett Square, Pa., voluntarily filed for Chapter 11 protection in June 2000, citing cuts in Medicare reimbursement and underpayment by most state-funded Medicaid systems. |
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