Patriot National, Inc., a provider of technology and outsourcing solutions to the insurance industry, announced that it has taken the first steps towards executing on its previously announced intention to consummate a restructuring through a chapter 11 bankruptcy case, as described in a restructuring support agreement (RSA) between the Company and its lenders, which are funds affiliated with Cerberus Business Finance, LLC and TCW Asset Management Company, LLC. On January 30, 2018, the Company and its direct and indirect U.S.-based subsidiaries (the "Subsidiaries"), filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company has also filed a plan of reorganization (“Plan”) consistent with the restructuring contemplated by the RSA.

“The Company’s recapitalization under the RSA and the Plan, including a new lending facility, will provide the capital structure needed to revitalize operations and funds to grow the business,” said John Rearer, CEO of Patriot National. “During the chapter 11 and beyond, the Company intends to operate its business in the ordinary course with limited impact on the Company’s valued customers and clients.”

Key elements of the bankruptcy process and Plan include:

• Employees will continue to receive all wages in the ordinary course of business
• Broker commissions will be paid in the ordinary course of business
• Carrier customers can be assured of uninterrupted service and payments in accordance with the terms of their current agreements
• Vendors will continue to be paid going forward pursuant to existing terms
• The Company intends to consummate the restructuring and emerge from bankruptcy in the second quarter of 2018
• Upon emergence from chapter 11, certain funds and accounts affiliated with Cerberus Business Finance, LLC and TCW Asset Management Company, LLC will convert a portion of their claims under the financing agreement in consideration for 100% of the new equity to be issued in Patriot National and the Subsidiaries
• Existing Patriot National stock will be cancelled and the Company will emerge a privately-held concern

"In cooperation with our lenders, we have taken a significant step in securing the future of Patriot National. Through this process we will reduce our debt, improve our liquidity and strengthen our financial condition, creating a more competitive company no longer bogged down by the historical relationships with and receivership of the Guarantee Insurance Company,” said Rearer. “Looking forward, our customers can continue to rely on us, our employees can be proud of their Company and our vendors are assured a strong partner.”

Hughes Hubbard & Reed LLP and Pachulski Stang Ziehl & Jones LLP are serving as legal counsel and Duff & Phelps Corporation is serving as financial advisor.