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21st Century Oncology Bankruptcy Plan Confirmed

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The U.S. Bankruptcy Court confirmed 21st Century Oncology Holding’s Joint Chapter 11 Plan of Reorganization.

As previously reported, “If confirmed and consummated, the Plan will eliminate more than $500 million in net debt from the Debtors’ balance sheet, provide the Debtors with the capital necessary to fund distributions to the Debtors’ creditors, and provide the Debtors with working capital necessary to fund ongoing operations. The Debtors intend to emerge from chapter 11 pursuant to the Plan on an expedited timeline within six to nine months following the Petition Date.”

In addition, “The Plan substantially reduces the Debtors’ current secured debt load, contemplates that the holders of the Debtors’ unsecured obligations will receive a Cash or equity distribution on account of their Claims, and allows holders of Interests in 21CH and 21CI to receive New Warrants if certain conditions are satisfied. Furthermore, the Plan contemplates two separate Rights Offerings that certain Noteholders may participate in to acquire the New Second Lien Notes and New Preferred Equity. The Debtors respectfully submit that the Plan maximizes recoveries for the Debtors’ stakeholders, right-sizes the Debtors’ balance sheet, and preserves the Debtors’ ongoing operations. Upon emergence from the Chapter 11 process and subject to certain conditions, certain of 21st Century Oncology Holdings’ creditors will contribute $75 million of cash equity in the reorganized company.”

This cancer treatment center operator filed for Chapter 11 protection on May 25, 2017, listing $1.1 billion in pre-petition assets.

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