Invacare embarks on ‘fresh start’ 

ELYRIA, Ohio – Invacare announced today that the company, as well as its two U.S. subsidiaries, Freedom Designs and Adaptive Switch Laboratories, successfully emerged from Chapter 11 bankruptcy on May 5. 

The news comes about three months after Invacare filed for Chapter 11. 

“This marks the start of a new era for Invacare,” said Geoffrey P. Purtill, president and CEO, who will continue to lead the company. “With Chapter 11 behind us, we look to renew our commitment to operational excellence and drive profitable long-term growth in our core lifestyle and mobility & seating product categories. Invacare is well-positioned to capitalize on global tailwinds in the markets we serve. We continue to manufacture and deliver vital health care products to our customers and each day focus on our purpose of Making Life’s Experiences Possible® for our end-users. Importantly, I want to express my gratitude to our associates for their unyielding commitment to Invacare. We now have a fresh start and a great opportunity to reshape the business for the future and realize our long-term growth potential.” 

Invacare’s Chapter 11 plan for reorganization was approved by the U.S. Bankruptcy Court for the Southern District of Texas on April 28, according to a Form 8-K filed on May 2. 

As part of its financial restructuring, the company successfully recapitalized its balance sheet through various transactions, including: 

• Equity rights offering: The company successfully executed a $75 million rights offering of new common stock and 9% Series A convertible preferred stock. 

• Exit term loan facility and secured convertible notes: The exit capital structure will consist of an exit term loan facility of $85 million and 7.5% exit secured convertible notes of $46.5 million, maturing in 2028. 

• Asset-based lending (ABL) facility: Finalized new North America ABL credit facility with borrowing capacity of up to $40 million, of which $13.4 million was borrowed on emergence. 

Upon emergence, Invacare used the proceeds from the rights offering and the ABL facility to repay $35.5 million of the debtor-in-possession (DIP) term loan and $13.8 million of the DIP ABL facility. In addition, it will use the proceeds for general corporate purposes, including working capital and payment of restructuring professional fees. The financial restructuring enabled the company to extinguish $223 million of principal and unpaid interest related to unsecured 2024 Series I, 2024 Series II and 2026 convertible notes. 

“We are pleased to have secured new financing, which will provide additional flexibility,” said Kathy Leneghan, senior vice president and CFO. “With a sustainable capital structure and enhanced balance sheet, we can now fully focus our efforts on executing our global transformation plan.” 

Invacare has also announced a new board of directors led by Steven H. Rosen, co-founder and co-CEO of Resilience Capital Partners LLC, who will serve as chairman, and Purtill, who continues to serve as a director. Newly appointed directors are: 

• Marec E. Edgar, president & CEO of A.M. Castle & Co. 

• Abraham T. Han, managing director of GLC Advisors & Co. 

• Peter J. Kuipers, executive vice president & CFO of Omnicell 

• Kimberly S. Lody, former president and CEO of Sonida Senior Living 

• Randel G. Owen, former president and CEO of Global Medical Response