Bankruptcy OK'd for Plainfield's Cedarlake Village

The owner of the Cedarlake Village affordable retirement community in Plainfield will be able to win approval the Chapter 11 plan at a July 13 confirmation hearing only by using the so-called cramdown procedure on the mortgage lender, Bank of America NA.

The Charlotte, North Carolina-based bank voted its $30 million in secured claims against the plan. Unsecured creditors voted "yes."

The plan proposes to give the bank a new note maturing in 2035 and paying 3.25 percent interest. If cash flow is insufficient to pay interest, unpaid amounts will be capitalized and accrue interest.

Unsecured creditors are to be paid in full in installments over four months.

The not-for-profit organization, affiliated with the Franciscans, says that the retirement community is appraised for $17.5 million. It has 186 units in two buildings. The Chapter 11 petition was filed in November in Chicago.

The case is In re Mayslake Village-Plainfield Campus Inc., 09-43338, U.S. Bankruptcy Court, Northern District Illinois (Chicago).