The Madison Park Church of God in Anderson has a green light to exit bankruptcy under a Chapter 11 plan approved when a judge in Indianapolis signed a confirmation order late last week.
The church, originally known as North Anderson Church of God, filed for Chapter 11 protection in July.
The church had purchased a 200-acre site in 2007 and built a new church using three bridge loans. One $6 million loan matured in July and couldn’t be repaid because the church was unable to sell some of the real estate.
The plan, accepted by all creditor classes, is designed to pay off a $5.6 million secured claim over 10 years.
A $6.8 million first mortgage is to be paid fully over 20 years, while a $8.8 million claim on two issues of unsecured bonds is due for payment in full over 25 years.
The church listed assets of $9.9 million against debt totaling $22 million, including $18.7 million in secured claims.
About 3,000 families attend the church, The Herald Bulletin of Anderson reported.