OnCure Holdings amends plan to revise intercompany claim treatment

By Caroline Salls

Pittsburgh, Aug. 20 - OnCure Holdings, Inc. filed an amended plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware that changes the proposed treatment of intercompany claims.

Under the amended plan, holders of intercompany claims will receive no distribution, provided that the reorganized company may reconcile these claims in order to avoid past, present or future tax or similar liabilities.

The original plan called for the intercompany claims to be either reinstated or discharged.

As previously reported, Radiation Therapy Services, Inc. has agreed to buy 100% of the shares of the reorganized holding company in a transaction valued at $126.5 million, including $42.5 million in cash and the assumption of debt.

Last week, OnCure canceled the auction and named Radiation Therapy the successful bidder.

Creditor treatment

Treatment of creditors will include 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. After the effective date, 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 will also receive an unused cash reserve amount and a share of any escrowed notes;

• Holders of general unsecured claims, intercompany claims and old holding company interests will receive no distribution; and

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

The disclosure statement hearing is scheduled for Aug. 21.

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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