Gulf Coast Health Care is one step closer to getting its liquidation plan signed off by a judge after the bankrupt nursing home chain indicated it had agreed to increase recoveries for unsecured creditors.

Gulf Coast’s original plan was rejected by a judge “for not meeting its burden to sign away creditors’ claims against third parties,” according to a Wall Street Journal report.

Court documents filed on Friday in the U.S. Bankruptcy Court in Delaware showed that landlord and real estate investment trust (REIT) Omega Healthcare Investors plans to increase its cash payment to a creditor class from $1 million to $1.8 million, the WSJ reported.

Insurer Zurich American Insurance Co. is also expected to provide, under a directors and officers policy, $2.1 million in proceeds to Gulf Coast.

The operator, with 28 SNFs in Florida, Georgia and Mississippi, filed for Chapter 11 bankruptcy back in October, citing “significant fiscal challenges” stemming from the pandemic.

And as of April 1 Gulf Coast had announced on its LinkedIn page that it had dissolved.

Gulf Coast previously leased 24 facilities from certain indirect affiliates and subsidiaries of Omega and four facilities from certain indirect affiliates and subsidiaries of Eagle Arc Partners LLC — formerly known as Blue Mountain Holdings, court documents stated.

Omega sold the majority of its Gulf Coast facilities for more than $300 million last month.

The REIT sold 22 previously leased and operated Gulf Coast facilities for $318 million in cash, according to a news release. The net cash proceeds, including related costs, were $304 million — amounting to a net gain of approximately $113.5 million.