LifeScan, a company in blood glucose monitoring, received approval for its Chapter 11 plan of reorganization from the United States Bankruptcy Court for the Southern District of Texas. With this approval, the company is positioned to emerge from its financial restructuring process by the end of this year.
“Today’s approval marks a significant milestone in our financial restructuring process,” Valerie Asbury, CEO of LifeScan, said. “I am deeply grateful for the support of our financial partners and the unwavering commitment of our employees, which have enabled us to stay focused on delivering on our mission for more than 20 million people in over 50 countries. This balance sheet restructuring provides a stronger foundation for LifeScan to support our base business, advance new growth strategies and commence our journey to become one of the most comprehensive players in the glucose management space.”
Through the financial restructuring, LifeScan will eliminate more than 75% of its debt. Upon emergence, LifeScan will be under majority ownership of a group of its existing lenders, including Canyon Partners and Brigade Capital Management.
“We are pleased to have successfully reached this milestone, which positions LifeScan for long-term stability and growth as they continue to deliver innovative solutions for people around the world with diabetes and related conditions,” Aaron Rizkalla, managing director at Canyon Partners, said.
“We’re pleased to support LifeScan as it advances its mission and reinforces its leadership in the glucose management sector to help the millions of people who rely on its products,” Ray Garson, partner at Brigade Capital Management, said.
Milbank is serving as legal advisor, Alvarez & Marsal is serving as financial and restructuring advisor, PJT Partners is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Davis Polk & Wardwell is serving as legal advisor and Houlihan Lokey is serving as investment banker to an ad hoc group of lenders that entered into the RSA.
