Case 23-90086 Document 1381 Filed in TXSB on 02/23/24 Page 1 of 3

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
IN RE:

§
§
§
§
§
§

TEHUM CARE SERVICES, INC., 1
DEBTOR

Chapter 11
Case No. 23-90086 (CML)

RESPONSE OF THE UNITED STATES TRUSTEE TO THE MOTION
OF THE OFFICIAL COMMITTEE OF TORT CLAIMANTS FOR STRUCTURED
DISMISSAL OF CHAPTER 11 CASE
TO THE HORONORABLE CHRISTOPHER M. LOPEZ
UNITED STATES BANKRUPTCY JUDGE:
Kevin M. Epstein, the United States Trustee for the Southern District of Texas (the “U.S.
Trustee”) responds to the motion for structured dismissal of this chapter 11 case (the “Motion”)
(Docket No. 1260) filed by the Official Committee of Tort Claimants (the “TCC”), and represents
as follows:
1.

More than one year after filing its chapter 11 bankruptcy case, the Debtor has been

unable to propose a confirmable plan. On September 29, 2023, the Debtor and the Official
Committee of Unsecured Creditors (the “UCC”) filed a Disclosure Statement (Docket No. 984)
and a Joint Chapter 11 Plan (Docket No. 985) and requested the Court conditionally approve the
Disclosure Statement on an emergency basis. (See Docket No. 986). The U.S. Trustee filed an
objection to the Disclosure Statement on various grounds, including that the plan described in the
Disclosure Statement was patently unconfirmable due to gatekeeper and injunction provisions, the

The last four digits of the Debtor’s federal tax identification number is 8853. The Debtor’s service address is: 205
Powell Place, Suite 104, Brentwood, Tennessee 37027.

1

1

Case 23-90086 Document 1381 Filed in TXSB on 02/23/24 Page 2 of 3

coercive opt out for the third-party releases, and disparate treatment of similarly situated creditors.
(See Docket No. 1022). On October 17, 2023, the Debtor and the UCC filed a First Amended
Disclosure Statement and First Amended Plan. (See Dockets No. 1042 and 1043).
2.

After failing to obtain conditional approval of the Disclosure Statement, the Debtor

and the UCC pivoted to a second mediation with various parties to reach a global settlement of
estate causes of actions. (See Docket No. 1151). The Debtor and UCC reached a settlement (the
“Settlement Agreement”), which they characterized as a “global” settlement notwithstanding the
opposition by the TCC, and on January 16, 2024, filed a joint motion for entry of an Order
authorizing and approving the Settlement. (See Docket No. 1259).
3.

The U.S. Trustee has objected to the Settlement Agreement (See Docket No. 1380).

The Settlement Agreement is an impermissible sub rosa plan that contains provisions that render
any proposed chapter 11 plan patently unconfirmable. Considering that after a year of spending
considerable resources in this chapter 11 case, the Debtor is still unable to propose a confirmable
plan, the U.S. Trustee supports dismissal of the case for cause under 11 U.S.C. § 1112(b).
4.

For the reasons discussed in this Response, the Objection, and the Motion, the Court

should dismiss this case and grant such other and further relief as it may deem just and proper.

Dated: February 23, 2024,

KEVIN M. EPSTEIN
UNITED STATES TRUSTEE
/s/ Ha Nguyen
Ha Nguyen, Trial Attorney
California Bar #305411
E-mail: Ha.Nguyen@usdoj.gov
Office: 713-718-4655
Cell: 202-590-7962
/s/ Andrew Jiménez
2

Case 23-90086 Document 1381 Filed in TXSB on 02/23/24 Page 3 of 3

Andrew Jiménez, Trial Attorney
District of Columbia Bar 991907
E-mail: Andrew.Jimenez@usdoj.gov
Office: 713-718-4668
United States Department of Justice
Office of the United States Trustee
515 Rusk Street, Suite 3516
Houston, Texas 77002
Facsimile: 713-718-4670
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing was served by electronic means
via ECF transmission to all Pacer System participants in this bankruptcy case on February 23,
2024.
/s/ HA M NGUYEN
Ha M. Nguyen

3