OnCure's disclosure statement OK'd by court, plan hearing is Oct. 3

By Lisa Kerner

Charlotte, N.C., Aug. 21 - OnCure Holdings, Inc.'s disclosure statement related to its plan of reorganization was approved Wednesday by the U.S. Bankruptcy Court for the District of Delaware, according to an attorney familiar with the case.

The company's plan confirmation hearing is set for Oct. 3.

OnCure filed its disclosure statement and plan on July 17.

As previously reported, Radiation Therapy Services, Inc. has 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 investment agreement is subject to higher and better bids.

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 and old holding company interests will not receive any recovery; 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.

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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