Rotech Healthcare Inc. announced it has successfully completed its financial restructuring and has emerged from Chapter 11 protection. Rotech noted in a press release that it has obtained $358 million in exit financing $358 million from Wells Fargo and certain existing holders of the 10.5% Senior Second Lien Secured Notes.

As a result of this five month restructuring process, Rotech substantially deleveraged its balance sheet, positioning Rotech to be a financially stronger enterprise. Rotech successfully reduced its outstanding debt by more than $300 million and reduced its annual cash interest expense from $60 million to less than $20 million.

"Today marks a new beginning for Rotech," said Steven P. Alsene, Rotech's president and chief executive oOfficer. "With the financial restructuring behind us, we have the increased financial flexibility, which we believe will allow us to compete aggressively in today's home medical equipment market. Our brief restructuring would not have been possible without the support of our lenders, creditors, suppliers, customers and especially our employees."

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.