21st Century Oncology secures court approval of disclosure statement

By Caroline Salls

Pittsburgh, Oct. 17 – 21st Century Oncology Holdings, Inc. received court approval of the disclosure statement for its plan of reorganization, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for Sept. 11.

As previously reported, 21st Century filed bankruptcy after reaching an agreement in principle with its senior lenders and bondholders on the terms of a comprehensive debt restructuring that is expected to reduce the company’s long-term net debt by more than $500 million.

Upon emergence, some of the company’s creditors will contribute $75 million of cash equity in the reorganized company. 21st Century said this cash will be used to pay off any borrowings under a debtor-in-possession facility in full, and any remaining cash will be used for general corporate purposes.

Under the proposed Chapter 11 plan, the company’s MDL facility and first-lien credit agreements will be converted into two new term loan credit facilities.

Senior notes and some general unsecured claims will be converted into equity.

In addition, rights offerings will be available to all senior noteholders who are accredited investors for the rights to purchase their share of $200 million in new second-lien notes and new preferred equity interests with an initial liquidation value of $88.24 million.

New warrants will be provided to holders of existing equity interests, provided that all creditor classes as well as the equityholders vote to accept the proposed plan.

According to Tuesday’s order, the rights offering record date is Oct. 16, and the rights offering will terminate at 5 p.m. ET on Nov. 29.

21st Century Oncology, a Fort Myers, Fla.-based provider of integrated cancer care services, filed for bankruptcy on May 25. The Chapter 11 case number is 17-22770.

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