According to an 8K filed with the SEC, GLAS USA served as administrative agent and collateral agent for a $100 million debtor-in-possession facility as part of Quorum Health’s restructuring support agreement with its term loan lenders and noteholders. Upon court approval, the new financing and cash generated from the company’s ongoing operations will be used to support the business during the court-supervised process.
Under the terms of the prepackaged plan, Quorum Health will reduce its debt by approximately $500 million. To implement the plan, Quorum Health filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Alvarez & Marsal North America will serve as restructuring advisor to Quorum Health.
McDermott Will & Emery and Wachtell, Lipton, Rosen & Katz will serve as legal counsel and MTS Health Partners will serve as financial advisor.
The operations of Quorum Health and its hospitals are unaffected and all facilities are open and available to provide patient care. The company’s subsidiary, Quorum Health Resources, also is continuing to provide the same services to its hospital, health system and healthcare provider clients. Employees will be paid their wages and benefits in the ordinary course for the work they perform. In addition, the parties to the restructuring agreement have agreed and have requested court authority to pay suppliers in full for goods and services provided before and after filing.
“We believe the financial restructuring plan announced today will strengthen our business and enable our community hospitals to continue the important work they are doing in addressing the COVID-19 crisis, as well as serve their patients and communities,” Bob Fish, president and CEO of Quorum Health, said. “Quorum Health has been transparent about the need to restructure our debt over the past year. We believe the RSA will significantly reduce our debt and annual interest expense and better position our company, our affiliated hospitals and our hospital management and consulting company for future growth. The RSA will also build on the significant progress we have made to strengthen our operations. We are grateful for the support of our financial stakeholders, which we believe represents a statement of confidence in our business and enables us to move through this process on an expedited basis.”
Quorum Health is an operator of general acute care hospitals and outpatient services in the United States.