Bankruptcy judge hears AHP’s reorganization plan
May 12, 2003
BRENTWOOD, Tenn. - A bankruptcy judge heard American HomePatient’s plan to reorganize its debt under a more manageable payment schedule in late April.
The hearing on the company’s plan ran April 23-30.
AHP filed for Chapter 11 bankruptcy July 31, 2002. The company was scheduled to pay off the entire $275 million Dec. 31, 2002, but AHP had nowhere near that much cash on hand.
Filing for Chapter 11 protection allowed AHP to continue its day-to-day operations and renegotiate more favorable terms for its debt. The better terms will free up more cash to fuel the company's growth and pay down the debt's principal, say company officials.
“It is now in the hands of the judge to confirm the plan we put forth,” said CEO Joseph Furlong.