InSight Health granted interim access to $15 million of DIP financing

By Caroline Salls

Pittsburgh, Dec. 14 - InSight Health Services Holding Corp. has been granted interim court approval of its $15 million debtor-in-possession facility from Bank of America, NA as part of the approval of its first-day bankruptcy motions, according to a company news release.

The final DIP loan hearing is scheduled for Jan. 4.

The company was also granted court approval to use its cash resources. InSight said the financing and cash use will give it the financial flexibility to meet its ongoing financial obligations, including employee wages, healthcare benefits, vendor payments and other operating expenses.

The court also scheduled a combined hearing to approve the disclosure statement for the company's plan of reorganization and confirm the pre-packaged plan, with the hearing to be held on Jan. 25.

"The approvals ensure that the company will be able to maintain regular operations and satisfy its employee obligations, while meeting its obligations to suppliers and serving its customers as it works to realign its capital structure and maximize stakeholder value as expeditiously as possible," president and chief executive officer Kip Hallman said in the release.

InSight, a Lake Forest, Calif., provider of diagnostic imaging services, filed for bankruptcy on Dec. 10 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 10-16564.

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