Court approves Rotech’s reorganization plan

Friday, August 30, 2013

ORLANDO, Fla. – A bankruptcy court in Delaware has approved Rotech Healthcare’s reorganization plan, paving the way for the company to emerge from Chapter 11 in September, it announced Aug. 29.

“We said at the outset this would be a swift passage through the reorganization plan, and it has been,” said Steven Alsene, president and CEO of Rotech, which filed for bankruptcy in April. “We have successfully completed an important milestone in the financial restructuring that positions Rotech to operate successfully in today’s very competitive environment.”

The bankruptcy court has approved $358 million in exit-financing commitments from Wells Fargo and from certain existing holders of 10.5% senior second lien secured notes, according to a press release.

Under the reorganization plan, Rotech’s existing common stock will be cancelled and most of the new common stock of the reorganized company will be distributed to holders of the senior second lien secured notes.

The company’s Statutory Committee of Unsecured Creditors supports the plan, which also received the approval of voting creditors during a hearing.

Rotech says the plan reduces its debt by more than $300 million.