Windsor Terrace Healthcare, LLC, 1:23-bk-11200

Debtors filed a Fourth Omnibus Motion to disallow or reclassify various creditors' claims in their Chapter 11 case.
A stipulation between Debtors and McKesson Medical-Surgical, Inc. resolved the objection to McKesson’s claims; court order entered approving this.
Court granted the motion to disallow or reclassify claims against several specific creditors, but continued a hearing on Recovery Nursing Agency’s disputed priority claim.
Fabienne Ouapou-Lena’s claim, originally classified as priority under 11 U.S.C. § 507(a)(4) and (a)(5), was challenged for not meeting statutory requirements.
Court determined Ms. Ouapou-Lena’s employment ended more than 180 days before bankruptcy filing, rendering her claim nonpriority.
Debtors must serve reclassified claimants with plan ballots so they may elect treatment under Class 4; amount of Ouapou-Lena’s claim to be revisited later.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether McKesson’s claim was improperly classified	Debtors: Claim should be reclassified/disallowed	McKesson: Objection resolved via stipulation	Denied as moot due to stipulation
Priority status of Ms. Ouapou-Lena’s wage/benefit claims	Ouapou-Lena: Claims should be priority (timing/met criteria)	Debtors: Employment ended >180 days before bankruptcy; does not qualify	Claims reclassified as unsecured nonpriority
Whether continued hearing is necessary for Recovery Nursing Agency’s disputed priority claim	Debtors: Disallow/reclassify claim immediately	Recovery Nursing: Dispute priority status	Hearing continued to later date
Challenge to amount of Ms. Ouapou-Lena’s claim	Debtors raise additional issues on amount	Ouapou-Lena not given opportunity to respond yet	Court reserves ruling on amount challenge

Lundell v. Anchor Const. Specialists, Inc., 223 F.3d 1035 (9th Cir. 2000) (establishes burden-shifting framework for evaluating objections to proofs of claim)
In re Laptops Etc. Corp., 164 B.R. 506 (Bankr. D. Md. 1993) (clarifies claimant’s burden of persuasion after objection supported by probative evidence)