TLC Vision files plan of reorganization; lenders to get stock, notes

By Caroline Salls

Pittsburgh, Jan. 7 - TLC Vision (USA) Corp. filed its plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, some of the company's pre-funded debt will be converted into 100% of the equity of TLC Vision (USA), which will emerge from bankruptcy as a privately held company.

The balance of the funded debt will be reinstated on restructured terms.

Specifically, the company said it will issue $50 million of five-year tranche A senior secured notes and $30 million of seven-year tranche B junior secured notes.

Plan creditor treatment will include:

• Holders of administrative claims, priority tax claims, essential trade claims and other priority claims will be paid in full in cash;

• Holders of other secured claims will recover 100% either in cash, reinstatement of the claim or the return of the collateral securing the claim;

• Holders of pre-bankruptcy lender secured claims will recover 100% through the new TLC Vision (USA) common stock and new restructured notes;

• Holders of general unsecured claims will recover 10% through a share of the lesser of a $750,000 cash pool and 10% of the claim;

• Holders of medical pending litigation claims will recover 100% through insurance proceeds; and

• Holders of subordinated claims, intercompany claims and old common stock and interests will receive no distribution.

TLC Vision, a Mississauga, Ont.-based eye care services company, filed for bankruptcy on Dec. 21. Its Chapter 11 case number is 09-14473.

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