InSight plan confirmation hearing July 9; 'first-day' motions approved

By Caroline Salls

Pittsburgh, May 31 - InSight Health Services Holdings Corp.'s pre-packaged plan of reorganization confirmation hearing has been scheduled for July 9, and the U.S. Bankruptcy Court for the District of Delaware approved some of the company's "first-day" motions, according to a company news release.

Among the first-day motions approvals, the court granted adequate protection for holders of InSight's $300 million of senior secured floating-rate notes due 2011 and approved credit facility amendments that allow the company to continue an up to $30 million revolving credit facility.

According to a Thursday court filing, the company also obtained approval to issue $15 million of additional senior secured floating-rate notes, with the proceeds to be transferred to InSight Health Services Corp.

As previously reported, initial consenting noteholders J.P. Securities Inc. and Black Diamond will purchase the $15 million of new floating-rate notes at a purchase price of 85% of the face amount of the new notes.

InSight will pay a $1.25 million commitment fee to the initial consenting noteholders.

The new notes must be issued by July 19.

InSight, a Lake Forest, Calif., provider of diagnostic imaging services, filed for bankruptcy on May 29. Its Chapter 11 case number is 07-10700.

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