Official Form 425A Plan of Reorganization for a Small Business Under Chapter 11 page 1

Fill in this information to identify the case:

Debtor name Civitas Health Services, Inc. and LeMar Allen Bowers

United States Bankruptcy Court for the: EASTERN DISTRICT OF VIRGINIA

Case number (if known) 19-34993 and 20-34139

x Check if this is an 

amended filing

Official Form 425A

Amended Joint Plan of Reorganization for Small Business Under Chapter 11

02/20

Joint Plan of Reorganization of Civitas Health Services, Inc. and LeMar A. Bowers, Dated December 11,2020

]

Background for Cases Filed Under Subchapter V

A. Description and History of the Debtor's Business

See Attached Exhibit A

B. Liquidation Analysis

To confirm the Plan, the Court must find that all creditors and equity interest holders who do not accept the Plan will receive at least as much under the 

Plan as such claim and equity interest holders would receive in a chapter 7 liquidation. A liquidation analysis is attached to the Plan as Exhibit B.

C. Ability to make future plan payments and operate without further reorganization

The Plan Proponent must also show that it will have enough cash over the life of the Plan to make the required Plan payments and operate the debtor’s 

business.

The Plan Proponents have provided projected financial information as Exhibit C for the Corporate Debtor and Exhibit D for the Individual 

Debtor.

The corporate plan Proponent’s financial projections show that the Debtor will have projected disposable income (as defined by § 1191(d) of the 

Bankruptcy Code) for the period described in § 1191(c)(2) of more than $1,100,000.00 over 5 years the individual Debtor’ schedules reflect $1,500 in 

disposable monthly income available for plan funding.

The final Plan payment is expected to be paid on January 2026 .

You should consult with your accountant or other financial advisor if you have any questions pertaining to these projections.

Article 1: Summary

This Plan of Reorganization (the Civitas Plan) under chapter 11 of the Bankruptcy Code (the Code) proposes to pay creditors of Civitas Health 

Services, Inc. (the Debtor) from [Specify sources of payment, such as an infusion of capital, loan proceeds, sale of assets, cash flow from operations, or future income].

This Plan provides for: 10 classes of priority claims;

5_ classes of secured claims*; (*Three nominally secured claims are either unperfected or trumped by the IRS secured 

claim.)

1 class of non-priority unsecured claims; and

1 classes of equity security holders.

Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 7 cents 

on the dollar. This Plan also provides for the payment of administrative and priority claims.

All creditors and equity security holders should refer to Articles 3 through 6 of this Plan for information regarding the precise treatment of their claim. 

This Plan of Reorganization (the Bowers Plan) under Chapter 11 of the Bankruptcy Code (the Code) proposes to pay secured creditors of LeMar Allen 

Bowers (the Debtor) pursuant to his spouse’s Chapter 13 Plan in the case of In Re: Melanie Hall Bowers, Case No. 20-33854, pending in this Court.

This Plan provides for: 1 classes of priority claims;

5 classes of secured claims*; (*Three nominally secured claims are either unperfected or trumped by the IRS secured 

claim.)

1 class of non-priority unsecured claims; and

Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 7 cents 

on the dollar. This Plan also provides for the payment of administrative and priority claims.

All creditors and equity security holders should refer to Articles 3 through 6 of this Plan for information regarding the precise treatment of their claim. 

Your rights may be affected. You should read these papers carefully and discuss them with your attorney, if you have one. (If you do not have 

an attorney, you may wish to consult one.)

Case 19-34993-KRH Doc 175 Filed 12/11/20 Entered 12/11/20 18:51:35 Desc Main

Document Page 1 of 5
Debtor Civitas Health Services, Inc. Case number (if known) 19-34993

Name

Official Form 425A Plan of Reorganization for a Small Business Under Chapter 11 page 2

Article 2: Classification of Claims and Interests

The proponents have attached claim charts setting forth the claims against the Company and the individual as Exhibits E (corporate ),and F.(individual)..

2.01 Class 1: Priority prepetition 

Employee wages 507(a) (4)

2.02 Class 2: Priority Employee 

Benefits §507 (a)(5) 

(Anthem)

2.03 Class 3: Priority Employee 

Benefits §507(a)(5)(United 

Healthcare)

2.04 Class 4: IRS Priority taxes § 

507(a)(8)

2.05 Class 5: Henrico Cty 

507(a)(8)(B) (personal 

property)

2.06 Class 6: Henrico Cty (Bus 

lic) 507(a)(8)(A)

2.07 Class 7: City of VB

507(a)(8)(A)

2.08 Class 8: City of Ches. (Bus 

lic) 507(a)(8)(A)

2.09 Class 9: VEC 507(a)(8)(A 

(Unemployment)

2.10 Class 10: VA Dept of Tax 

507(a)(8)(A (WH)

2.11 Class 11: IRS Secured 

Claim

2.12 Class 12: Direct Capital 

Secured Claims (autos)

2.13 Class 13: M&M Automotive 

Secured Claim (autos)

2.14 Claim 14: General 

unsecured claims and 

Nominally secured claims 

of Knight Capital, SPG 

Advance, Kabbage and On 

Deck Capital

Article 3: Treatment of Administrative Expense Claims, Priority Tax Claims, and Quarterly and Court Fees

3.01 Unclassified claims Under section § 1123(a)(1), administrative expense claims and priority tax claims are not typically in classes. Due to the 

number and diversity of priority claims the proponents have established classes for priority claims for clarity only.

3.02 Administrative expense 

claims

Each holder of an administrative expense claim allowed under § 503 of the Code will be paid in full on the effective date of 

this Plan, in cash, or upon such other terms as may be agreed upon by the holder of the claim and the Debtor.

3.03 Priority tax claims Each holder of a priority tax claim will be paid pursuant to § 1129(a)(9)(C) of the Code. 

3.04 Statutory fees All fees required to be paid under 28 U.S.C. § 1930 that are owed on or before the effective date of this Plan have been 

paid or will be paid on the effective date. 

3.05 Prospective quarterly fees All quarterly fees required to be paid under 28 U.S.C. § 1930(a)(6) or (a)(7) will accrue and be timely paid until the case is 

closed, dismissed, or converted to another chapter of the Code

Article 4: Treatment of Claims and Interests Under the Plan

Case 19-34993-KRH Doc 175 Filed 12/11/20 Entered 12/11/20 18:51:35 Desc Main

Document Page 2 of 5
Debtor Civitas Health Services, Inc. Case number (if known) 19-34993

Name

Official Form 425A Plan of Reorganization for a Small Business Under Chapter 11 page 3

4.01 Claims and interests shall be treated as follows under this Plan and 

pursuant to the attached Projection:

Class Impairment Treatment

Class 1 - Priority 

claims

pre-petition 

Employee Wage

Impaired

X

Unimpaired

Class 1 is unimpaired by this Plan. Each 

holder of a Class 1 Priority Claim will be 

paid in full, in cash, over the 6 months 

after the effective date.. 

Class 2: Priority 

Employee Benefits 

(Anthem)

Impaired

Unimpaired

The Debtor asserts that a claim for 

unpaid insurance premiums owed to a 

third party does not constitute an 

employee benefit obligation entitled to 

the priority claimed under 11USC. 507 

(a)(5) An objection will be filed seeking to 

treat this claim as general unsecured.

Class 3: Priority 

Employee Benefits 

(United health)

Impaired

Unimpaired

The Debtor asserts that a claim for 

unpaid insurance premiums owed to a 

third party does not constitute an 

employee benefit obligation entitled to 

the priority claimed under 11USC. 507 

(a)(5 An objection will be filed seeking to 

treat this claim as general unsecured.

Class 4: IRS Priority 

Taxes

Impaired

Unimpaired

Priority tax claims are not typically 

incorporated into classes. The Debtor 

classifies the claim here for clarity only. 

The Debtor proposes to pay the IRS 

claim, pursuant to 1192(a)(9)(c), in full 

over 5 years including escalating 

monthly payments as set forth in the 

budget plus semi-annual distributions of 

net operating income. The Debtor also 

proposes establishment of a capital 

reserve fund which may be tapped to 

make payments. In addition, LeMar 

Bowers, principal of the Debtor and Joint 

Proponent of this Plan has $,1,500 per 

month in Disposal Monthly Income which 

will be paid to the IRS claim for which he 

is personally liable. Although uncertain 

the Corporate Debtor also proposes 

payment of 25% net profits every 6 

months. 

Class 5: Class 5: 

Henrico Cty 

(personal property)

Impaired

Unimpaired

Henrico County personal property tax 

claim will be paid prorata with other 

property and business license taxes via 

pro rata distribution of $400per month.

Class 6: Henrico 

Cty (Bus Lic)

Impaired

Unimpaired

Henrico County business license claim 

will be paid prorata with other property 

and business license taxes via pro rata 

distribution of $400 per month

Class 7: City of VB Impaired

Unimpaired

City of Virginia Beach personal property 

tax claim will be paid prorata with other 

property and business license taxes via 

pro rata distribution of $400 per month.

Class 8: City of 

Ches. (Bus Lic)

Impaired

Unimpaired

City of Chesapeake business license 

claim will be paid prorata with other 

property and business license taxes via 

pro rata distribution of $400 per month.

Class 9: VEC 

Unemployment 

Impaired

Unimpaired

Class 10: VA Dept 

of Tax (WH)

Impaired

Unimpaired

The Virginia Department of Taxation 

claim for withholding taxes will be paid in 

monthly increments of$1,851.13 for 60

months.

Class 11: IRS 

Secured Claims

Impaired

Unimpaired

The IRS secured claim will be paid in 

conjunction with payments of the IRS 

priority claim set forth above. 

Case 19-34993-KRH Doc 175 Filed 12/11/20 Entered 12/11/20 18:51:35 Desc Main

Document Page 3 of 5
Debtor Civitas Health Services, Inc. Case number (if known) 19-34993

Name

Official Form 425A Plan of Reorganization for a Small Business Under Chapter 11 page 4

Class 12: Direct 

Capital Secured 

Claims 

Impaired

Unimpaired

The purchase money Secured Claim of 

Direct Capital will be paid in monthly 

payments of $619, until paid in full.

Class 13: M & M 

Automotive 

Secured Claims 

Impaired

Unimpaired

The purchase money Secured Claim of 

M&M Automotive will be paid in monthly 

payments of $84.11, until paid in full.

Class 14: General 

unsecured claims 

and Nominally 

secured claims of 

United Health Care, 

Anthem, Capital, 

SPG Advanced, 

Kabbage and On 

Deck Capital

Impaired

Unimpaired

General unsecured claims as well as 

nominally secured claims for which no 

security interest was perfected, and 

including perfected claims which are 

trumped by the IRS' NFTL are treated as 

unsecured. The Debtor proposes paying 

$833.00 per month for 60 months of the 

Plan.

Article 5: Allowance and Disallowance of Claims

5.01 Disputed Claim A disputed claim is a claim that has not been allowed or disallowed [by a final non-appealable order], and as to which either:

(i) a proof of claim has been filed or deemed filed, and the Debtor or another party in interest has filed an objection; or 

(ii) no proof of claim has been filed, and the Debtor has scheduled such claim as disputed, contingent, or unliquidated.

5.02 Delay of distribution on a 

disputed claim

No distribution will be made on account of a disputed claim unless such claim is allowed [by a final non-appealable order].

5.03 Settlement of disputed 

claims

The Debtor will have the power and authority to settle and compromise a disputed claim with court approval and compliance 

with Rule 9019 of the Federal Rules of Bankruptcy Procedure.

Article 6: Provisions for Executory Contracts and Unexpired Leases

6.01 Assumed executory

contracts and unexpired

leases

none

(b) Except for executory contracts and unexpired leases that have been assumed, and if applicable assigned, before the 

effective date or under section 6.01(a) of this Plan, or that are the subject of a pending motion to assume, and if 

applicable assign, the Debtor will be conclusively deemed to have rejected all executory contracts and unexpired leases 

as of the effective date. 

A proof of a claim arising from the rejection of an executory contract or unexpired lease under this section must be filed 

no later than 45 days after the date of the order confirming this Plan.

Article 7: Means for Implementation of the Plan

The Debtor will fund the Plan through operations. In addition the Debtor' principal LeMar Bowers may contribute to "Trust" 

portion of unpaid taxes.

Article 8: General Provision

8.01 Definitions and rules of 

construction

The definitions and rules of construction set forth in §§ 101 and 102 of the Code shall apply when terms defined or 

construed in the Code are used in this Plan, and they are supplemented by the following definitions:

[Insert additional definitions if necessary].

8.02 Effective Date The effective date of this Plan is the first business day following the date that is 30 days after the entry of the confirmation 

order. If, however, a stay of the confirmation order is in effect on that date, the effective date will be the first business day 

after the date on which the stay expires or is otherwise terminated.

8.03 Severability If any provision in this Plan is determined to be unenforceable, the determination will in no way limit or affect the 

enforceability and operative effect of any other provision of this Plan.

Case 19-34993-KRH Doc 175 Filed 12/11/20 Entered 12/11/20 18:51:35 Desc Main

Document Page 4 of 5
Debtor Civitas Health Services, Inc. Case number (if known) 19-34993

Name

Official Form 425A Plan of Reorganization for a Small Business Under Chapter 11 page 5

8.04 Binding Effect: The rights and obligations of any entity named or referred to in this Plan will be binding upon, and will inure to the benefit of 

the successors or assigns of such entity.

8.05 Captions The headings contained in this Plan are for convenience of reference only and do not affect the meaning or interpretation of 

this Plan.

[8.06 Controlling Effect Unless a rule of law or procedure is supplied by federal law (including the Code or the Federal Rules of Bankruptcy 

Procedure), the laws of the State of Virginia govern this Plan and any agreements, documents, and instruments 

executed in connection with this Plan, except as otherwise provided in this Plan.] 

[8.07 Corporate Governance Control of the reorganized Debtor will remain with Lemar Bowers.

[8.08 Retention of Jurisdiction Language addressing the extent and the scope of the bankruptcy court’s jurisdiction after the effective date of the plan.] 

Article 9: Discharge

[Discharge if the Debtor is a corporation under Subchapter V]

If the Debtor’s Plan is confirmed under § 1191(a), on the effective date of the Plan, the Debtor will be discharged from any debt that arose before confirmation of this 

Plan, to the extent specified in § 1141(d)(1)(A) of the Code, except that the Debtor will not be discharged of any debt:

(i) imposed by this Plan; or

(ii) to the extent provided in § 1141(d)(6).

If the Debtor’s Plan is confirmed under § 1191(b), confirmation of this Plan does not discharge any debt provided for in this Plan until the court grants a discharge on 

completion of all payments due within the first 3 years of this Plan, or as otherwise provided in § 1192 of the Code. The Debtor will not be discharged from any debt:

(i) on which the last payment is due after the first 3 years of the plan, or as otherwise provided in § 1192;

or

(ii) excepted from discharge under § 523(a) of the Code, except as provided in Rule 4007(c) of the Federal Rules of Bankruptcy Procedure.

Article 10: Other Provisions

[Insert other provisions, as applicable.]

Default: Pursuant to 1193(c)(3)(B), secured creditors retain their liens if not treated as unsecured 

under the confirmation order. In the event of default under the Plan after 30 days notice to cure to the 

Debtor and counsel for the Debtor, such creditors shall be entitled to relief from any stay then as in 

effect and entitled to exercise their legal rights as to their collateral. 

Respectfully submitted,

X /s/ LeMar Allen Bowers LeMar Allen Bowers

Individually and Designee of Civitas Health Services, Inc.] [Printed name]

X /s/ W. Greer McCreedy, II W. Greer McCreedy, II 27681

Counsel for Civitas

/s/ James E. Kane 

Counsel for LeMar Allen Bowers 

 [Printed name]

________

Case 19-34993-KRH Doc 175 Filed 12/11/20 Entered 12/11/20 18:51:35 Desc Main

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