21st Century Oncology emerged from Chapter 11 with new owners. The restructuring, which was approved by the U.S. Bankruptcy Court this week, reduced the company’s net debt by more than $500 million. Upon emergence, the majority owners of the reorganized company – which include certain funds and accounts managed by Beach Point Capital Management, Governors Lane, J.P. Morgan Investment Management, Oaktree Capital Management, Roystone Capital Management and HPS Investment Partners – will provide fresh capital to the company.

According to court fillings, the plan and restructuring support agreement contemplates a comprehensive restructuring of the debtors’ balance sheet through, among other things, the conversion of its existing obligations into two new term loan credit facilities, a debt-to-equity conversion of the notes and certain general unsecured claims, the rights offerings – pursuant to which all noteholders that are accredited investors will receive rights to purchase their pro rata shares of $200 million in aggregate original principal amount of the new second lien notes – and the new preferred equity with an aggregate initial liquidation value of $88.235 million.

The leadership of the reorganized 21st Century Oncology includes a new governing board, which includes Thomas Gordon, Mark Stolper, Fulton Collins, Nilay Mehta, Robert Cook and Jeff Goldberg. Collectively, the new board has significant healthcare and corporate leadership experience.

Kimberly Commins-Tzoumakas was named interim CEO.

Commins-Tzoumakas said, “I am very excited about this opportunity to help lead 21st Century Oncology during an important time in the company’s history. The successful financial restructuring provides a fresh start and an infusion of capital from our new ownership group, which demonstrates their confidence in the company and its future.”

Follow the story:
WSFS, Morgan Stanley Provide 21st Century Oncology DIP Financing