Invacare files for bankruptcy, enters restructuring agreement

ELYRIA, Ohio – Invacare and two of its U.S. based subsidiaries have filed Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas, the company announced today. 

The company does not anticipate the filings will impact its ability to manufacture and deliver products to its customers globally, and says its other businesses throughout the world remain strong and are not included in the filings. 

The filings are part of a restructuring support agreement (RSA) with substantially all of its debt holders. 

“The actions announced today mark a big step forward for Invacare,” said Geoff Purtill, president and CEO. “Having the full support of our secured term loan lender and a majority of our convertible noteholders will enable the prearranged filings to proceed efficiently. The company expects to emerge with significantly less debt on its balance sheet and will secure additional liquidity to support long-term growth. Global demand is strong, and by increasing our financial flexibility, we will be able to focus on continuing to design, manufacture and distribute products that help Make Life’s Experiences Possible. We have a clear vision for the future, and we are working expeditiously towards our goals.” 

The RSA provides for a significant reduction of Invacare’s debt balance and a substantial new money investment, which will enhance the company’s liquidity, thereby enabling it to invest for future growth. Specifically, the transactions agreed to in the agreement contemplate a substantial reduction of the company’s funded debt by approximately $240 million.  

The RSA also includes a backstop for a rights offering to holders of claims on account of Invacare’s unsecured notes and holders of general unsecured claims, providing the company with $60 million of equity capital to repay certain of its debt obligations and facilitate the company’s transformation plan.  

Upon emergence from Chapter 11, Invacare expects to be financially positioned to seize opportunities and capitalize on a significant upward shift in market demand. The company intends to deliver improved profitability and free cash flow in 2023 and beyond, while building on its legacy as a leader and innovator in the lifestyle and mobility and seating markets.

Additionally, on Jan. 30, Invacare completed the sale of its respiratory assets to Ventec Systems, a subsidiary of React Health, and on Jan. 27, completed the sale of its Top End sports and recreation wheelchair division to Top End Sports.

• Read about Invacare's plans to exit the respiratory market.