OnCure announces Oct. 25 effective date for plan of reorganization

By Jim Witters

Wilmington, Del., Oct. 28 - OnCure Holdings, Inc. has substantially consummated its Chapter 11 plan of reorganization and the plan effective date occurred on Oct. 25, according to an Oct. 25 filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court confirmed the reorganization plan on Oct. 3.

Radiation Therapy Services, Inc. agreed to buy 100% of the shares of the reorganized holding company and pay $42.5 million in cash and guarantee $82.5 million of amended secured notes.

The sale proceeds leave senior secured noteholders with a $100 million deficiency on their claims, but the transaction and reorganization presented the best alternative for OnCure creditors, attorneys for the debtors and the noteholders said.

Creditor treatment

Treatment of creditors under the confirmed plan includes the following:

• Debtor-in-possession facility claims will be paid in full in cash;

• Pre-bankruptcy term loan claims will be paid in full on the effective date, to the extent not previously paid in full under DIP facility orders;

• The principal amount of pre-bankruptcy secured notes will be reduced to $82.5 million.

Noteholders will receive a share of base notes and a net cash amount.

Noteholders will receive a share of either the sum of the amount by which the final purchase price exceeds the initial purchase price if the final price is greater plus an escrow amount or, if the final purchase price is equal to or less than the initial price, an amount equal to the escrow amount following distribution to the investor.

Noteholders also will receive an unused cash reserve amount and a share of any escrowed notes;

• Holders of general unsecured claims and old holding company interests will not receive any recovery; and

• Old affiliate interests in any holding company subsidiary will remain effective and will still be owned by the same holder that owned them immediately before the effective date.

OnCure is an Englewood, Colo.-based provider of business management services and medical equipment to oncology physician groups that treat cancer patients. Its Chapter 11 case number is 13-11540.

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