OnCure wins court approval of sale procedures, $25 million DIP loan

By Caroline Salls

Pittsburgh, July 24 - OnCure Holdings, Inc. received court approval of the bidding procedures for the proposed sale of substantially all of its assets or all new capital stock under a Chapter 11 plan, according to a Wednesday filing 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 $126.5 million, including $42.5 million in cash and the assumption of debt.

OnCure said it also will accept bids for substantially all of its assets and conduct an auction if other bidders emerge.

Competing bids are due by 5 p.m. ET on Aug. 14.

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.

An auction, if necessary, will be held on Aug. 19. Bids at auction must be made in minimum increments of $500,000.

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

DIP financing approved

In addition, OnCure received final court approval of its $25 million debtor-in-possession facility, according to a separate court filing.

The financing facility includes a paydown of all prepetition first-lien secured obligations within two business days and an additional $4.7 million draw.

Wells Fargo Bank, NA is the administrative agent.

The financing will mature six months from the bankruptcy filing date.

Interest will be Libor plus 800 basis points with a 1.25% Libor floor.

OnCure is an Englewood, Colo.-based provider of business management services and medical equipment to oncology physician groups that treat cancer patients. The company filed bankruptcy on June 14 under Chapter 11 case number 13-11540.

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