Rotech Healthcare entered into a new $185 million credit agreement with SunTrust Bank as administrative agent and issuing lender on the transaction.
Rotech Healthcare announced that it completed its financial restructuring and has emerged from Chapter 11. Proskauer Rose serves as legal advisor, Barclays as financial advisor and AlixPartners as restructuring advisor.
Rotech Healthcare said the U.S. Bankruptcy Court approved the company’s second amended Joint Plan of Reorganization, along with $358 million of exit financing commitments received from Wells Fargo.
Rotech Healthcare is requesting bankruptcy court approval on commitment letters for $357.5 million in exit financing. The proceeds are intended to be used to fund the company’s post-emergence working capital needs.
The U.S. Bankruptcy Court granted approval for Rotech Healthcare’s first-day motions, which were designed to ensure normal daily operations during the Chapter 11 debt restructuring.
Bloomberg reported that Rotech Healthcare filed for bankruptcy with Silver Point Finance agreeing to loan the company as much as $30 million to help finance the bankruptcy.