Rotech Healthcare Inc. announced today that the U.S. Bankruptcy Court has approved the Second Amended Joint Plan of Reorganization of Rotech Healthcare Inc., along with $358 million of exit financing commitments received from Wells Fargo and certain existing holders of the 10.5% Senior Second Lien Secured Notes.
The reorganization plan was confirmed at a court hearing in Delaware and was supported by the Statutory Committee of Unsecured Creditors. Creditors entitled to vote overwhelmingly voted in favor of the reorganization plan.
At the time that the Company filed its reorganization cases on April 8, 2013, the Company said that it would reorganize its businesses and emerge from Chapter 11 within 90 to 150 days. The Company said that it expects to close on its exit financing commitment and formally emerge from Chapter 11 next month.
"We said at the outset this would be a swift passage through the reorganization process and it has been," said Steven P. Alsene, Rotech's President and Chief Executive Officer. "We have successfully completed an important milestone in the financial restructuring that positions Rotech to operate successfully in today's very competitive environment.
"We appreciate the strong support the Company has received from its lenders, creditors, suppliers, customers and especially its employees. With a restructured balance sheet, new long-term financing and a seasoned management team, Rotech is well-positioned for future leadership in the industry."
Under the reorganization plan, the Company's existing common stock will be cancelled and substantially all of the new common stock of reorganized Rotech will be distributed to holders of the 10.5% Senior Second Lien Secured Notes.
Proskauer Rose, LLP serves as the Company's legal advisor, Barclays as financial advisor and AlixPartners as restructuring advisor. Wachtell Lipton Rosen & Katz serves as legal advisor to each of the Consenting Noteholders holding Second Lien Secured Notes.
Rotech Healthcare Inc. is one of the largest providers of home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The Company provides home medical equipment and related products and services principally to older patients with breathing disorders, such as chronic obstructive pulmonary diseases (COPD), which include chronic bronchitis, emphysema, obstructive sleep apnea and other cardiopulmonary disorders.