Court approves Joerns' Chapter 11 plan
By HME News Staff
Updated Tue July 30, 2019
CHARLOTTE, N.C. - Joerns Healthcare says the U.S. Bankruptcy Court for the District of Delaware has confirmed the Chapter 11 plan for the company and its domestic subsidiaries. Joerns expects to complete its restructuring and successfully emerge from bankruptcy over the coming weeks. The restructuring plan reduces the company's debt by more than $320 million, while providing up to $40 million of new financing to support its ongoing operations and continued investments. The plan also provides for all of the company's unsecured creditors to be paid in full on their allowed claims, ensuring minimal operational or business disruption. After restructuring, the company will move forward under new ownership made up of its pre-petition secured lenders, who have designated as initial board members Patrick Hayes (Golub Capital), Patrick Bartels (Redan Advisors) and Brent Buckley (Benefit Street Partners). CEO David Johnson recently announced his resignation. John Regan, senior vice president and CFO, is fulfilling CEO responsibilities while the company searches for a new top exec.
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