OnCure seeks OK for bidding in $125 million sale to Radiation Therapy

By Jim Witters

Wilmington, Del., June 24 - OnCure Holdings, Inc. is seeking approval of bidding procedures for the sale of substantially all of the company's assets or all of the new capital stock as reorganized under its Chapter 11 plan, according to documents filed June 22 with the U.S. Bankruptcy Court for the District of Delaware.

Stalking horse bidder Radiation Therapy Services, Inc. has agreed to acquire the new stock in the reorganized company in a transaction valued at $125 million, according to court documents.

The offer includes $42.5 million in cash and as much as $82.5 million in assumed debt.

OnCure's secured noteholders have executed a restructuring support agreement outlining their commitment to support the transaction.

The debtors intend, in the near term, to file a Chapter 11 plan of reorganization and an accompanying disclosure statement, based on the stock sale, court documents state.

However, OnCure also will accept bids for substantially all of the debtor's assets and conduct an auction if other bidders emerge.

Company operation

OnCure holds management service agreements with oncology physician groups, providing staffing, operations management, marketing, purchasing, contract negotiation assistance, billing and collection service, information technology, human resources and payroll services and other non-clinical services.

OnCure also leases the facilities and provides the equipment for the treatment centers.

The physician groups and their physicians retain full control over the clinical aspects of patient care.

"We are excited by the prospect of working with OnCure's physician partners to provide technically advanced and successful cancer treatment to their patients and plan to work with the company and its stakeholders to conclude its reorganization and our acquisition expeditiously. The acquisition of OnCure would be a significant addition to our business creating additional prospects for growth," said Dr. Daniel Dosoretz, Radiation Therapy's president and chief executive officer.

Bid procedures

Under the proposed bidding procedures, the bid deadline would be no later than 20 days after the procedures are approved.

An auction, if necessary, would occur within 30 days of the entry of the bid procedures order.

Closing on the sale must occur no later than Oct. 25.

The bids must exceed the stalking horse bid by at least the sum of the bid protections and $1 million.

If Radiation Therapy is not the successful bidder, the debtors will pay a $1 million breakup fee and reimburse as much as $2 million in expenses.

No hearing on the bid procedures motion has been scheduled.

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

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