Rotech files bankruptcy, secures financing
By HME News Staff
Updated Mon April 8, 2013
ORLANDO, Fla. - Rotech Healthcare announced today that it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
As part of its reorganization plan, Rotech will eliminate about half of its secured debt, the company stated in a press release.
“Today's actions will enable us to create a capital structure that will provide a foundation for sustained profitability and future growth,” stated Steven Alsene, president and CEO of Rotech, in the release. “This effort is being undertaken to fix our balance sheet and will not affect our operations. Given the support of our secured stakeholders, we expect the reorganization process to conclude quickly.”
With widespread consensus among key stakeholders, Rotech plans to receive confirmation and successfully complete the reorganization within 90 to 150 days.
Additionally, in what Rotech says is a vote of confidence, Silver Point Finance, the holder of an existing $23.5 million term loan, has agreed to provide debtor-in-possession financing of up to $30 million. Rotech will use this financing for ordinary working capital purposes and to ensure normal operations during the Chapter 11 process, according to the release.
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