Rotech Healthcare is requesting that a Delaware bankruptcy judge sign off on commitment letters for $357.5 million in exit financing, funds the medical equipment provider said are crucial to its speedy emergence from Chapter 11.
According to bankruptcy court documents, On June 13, 2013, Rotech filed their second amended chapter 11 plan and disclosure statement, which was approved by the court on June 14, 2013. The debtors are in the process of soliciting votes on the plan. The voting deadline is August 8, 2013, and a confirmation hearing is scheduled for August 20, 2013.
The debtor is seeking to enter into exit financing commitment documents in advance of the Chapter 11 plan confirmation hearing to ensure that the debtors maintain uninterrupted access to committed exit financing on the most viable terms available.
On the effective date of the plan, the reorganized debtors will enter into the exit facilities comprised of (a) a first lien senior secured revolving credit facility in an aggregate principal amount of $25 million, (b) a first lien senior secured tranche A $100 million term loan facility, (c) a first lien senior secured tranche B $75 million term loan facility and (d) a second priority senior secured $157.5 million term loan facility.
The reorganized debtors will use the proceeds of the exit facilities to fund distributions under the plan, pay the fees and/or premiums and expenses associated with the exit facilities, and fund the reorganized debtors’ post-emergence working capital needs.
Previously on abfjournal: Court Approves Rotech First Day Motions, April 10, 2013