Staple Street Provides DIP Facility and Asset Purchase Agreement for Avante

Avante Health Solutions, a provider of aftermarket service, repair and refurbishment for medical equipment, entered into an asset purchase agreement (APA) with an affiliate of Staple Street Capital (SSC), pursuant to which SSC will acquire substantially all of the company’s assets. The agreement will support the recapitalization of Avante, enabling the company to deleverage its balance sheet and continue operating and serving customers over the long-term._x000D_
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To facilitate the transaction, Avante has filed for voluntary protection under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This will provide for a quick and orderly sale of the company’s assets under Section 363 of the Bankruptcy Code, with SSC serving as the “stalking horse bidder” in a court-supervised auction and sale process._x000D_
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“Our team has been working diligently to strengthen our financial foundation in the face of difficult circumstances brought on by ongoing litigation, which has cost Avante approximately $20 million over the past several years,” Jim Leitl, CEO and president of Avante, said. “After evaluating our options, the board and management team determined that entering into an agreement with Staple Street Capital, who will support Avante’s long-term success, is the best path forward. We are confident that this acquisition best positions the business for the future. As always, we remain committed to continue our mission of making it easier and more affordable for every hospital, clinic and medical practice to have the very best equipment, supplies and services. I want to thank our incredibly talented employees for their continued focus and hard work, and our customers, partners and suppliers for their support.”_x000D_
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“We are excited to partner with Avante to provide the strategic and capital resources to enable a successful recapitalization of the business and support its long-term growth strategy,” the partners of SSC said. “We look forward to further investing in Avante to meet the highest standards of customer care and quality, and to further innovate new value-added services and solutions for customers.”_x000D_
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The agreement with Staple Street Capital remains subject to Court approval and other customary conditions, with an expected completion date by year end. Avante intends to move through this process while operating in the ordinary course, providing the industry-critical services that its customers, patients and partners rely on._x000D_
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In connection with the proposed sale transaction, Avante has received a commitment for debtor-in-possession (DIP) financing from Staple Street Capital to support the business through the sale process. The company intends to pay vendors, suppliers and other trade creditors in full under normal terms for goods and services provided during the bankruptcy case. Avante will exit the chapter 11 process with a healthy balance sheet and with Staple Street Capital as a financial partner to support its future growth.