OnCure Holdings Files Chapter 11, Wells Fargo to Agent DIP
OnCure Holdings and certain of its affiliates, providers of management services and facilities to oncology physician groups throughout the U.S., filed Chapter 11 in an effort to restructure their finances. The petitions were filed in the United States Bankruptcy Court for the District of Delaware. OnCure is seeking authority to establish a DIP facility that provides for post-petition secured loans in an amount not to exceed $25 million.
According to bankruptcy court filings, Wells Fargo is both a prepetition agent and a proposed DIP agent, and the majority of the proposed DIP lenders are prepetition first lien lenders and all of the proposed DIP lenders are prepetition secured noteholders.
Prior to filing, OnCure, in consultation with an ad hoc group of secured noteholders, engaged in an extensive campaign to market the company’s assets to potential financial and strategic buyers, resulting in an agreement in principle regarding a proposed acquisition with a third-party purchaser for aggregate consideration of approximately $125 million. The transaction remains subject to the negotiation and execution of definitive documentation by the parties.
OnCure’s legal advisors in connection with its restructuring are Latham & Watkins and Richards, Layton & Finger. Financial advisory services are being provided by Jefferies. Match Point Partners is providing management services to OnCure.