Court Approves Rotech First Day Motions
Rotech Healthcare announced that the U.S. Bankruptcy Court for the District of Delaware in Wilmington granted, on an interim basis, the company’s first-day motions, which were designed to ensure that daily operations continue normally during the company’s brief pre-arranged Chapter 11 debt restructuring. The court approved, among other motions, the company’s ability to continue paying employee wages and benefits.
In addition, the court authorized the immediate use of $25 million of the company’s $30 million debtor-in-possession (DIP) financing. The court also approved the use of the company’s existing cash management systems and bank accounts, allowing the Company to issue payments and honor any outstanding checks and to pay those critical trade vendors that sign a vendor support agreement.
The company received approval of its request for a hearing to establish the adequacy of its disclosure statement, scheduled for 2 p.m., May 16, 2013. Rotech anticipates completing the process by the end of the summer.
“Today’s quick approval of our first-day motions is encouraging and puts Rotech on a strong footing as we move forward with implementing our debt restructuring plan,” said Steven P. Alsene, Rotech’s president and chief executive officer. “These actions, along with interim approval of access to $25 million in new financing, should reassure our employees, customers, our suppliers and the communities we serve that we will continue to maintain daily operations and that it is business as usual for Rotech’s locations nationwide.”
Proskauer Rose, LLP serves as the company’s legal advisor, Barclays as financial advisor and AlixPartners as restructuring advisor.
Rotech Healthcare a provider of home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services.
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