Akumin gets interim approval of disclosure statement, DIP financing

By Sarah Lizee

Olympia, Wash., Oct. 24 – Akumin Inc. received conditional approval of the disclosure statement for its pre-packaged Chapter 11 plan, as well as interim access to its proposed $75 million debtor-in-possession facility, according to orders filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

A combined hearing on the disclosure statement, plan and DIP financing is scheduled for Nov. 29.

As previously reported, the company announced on Friday that it has reached an agreement with Stonepeak, an alternative investment firm specializing in infrastructure and real assets, and the company's stakeholders on the terms of a financial restructuring aimed at improving Akumin’s balance sheet and providing ample liquidity.

Akumin and Stonepeak executed a restructuring support agreement with over one-third of the company’s common equity, a supermajority of the company’s bondholders, and all of the company’s revolving lenders.

As part of the deal, Stonepeak has agreed to provide the company with a $75 million junior secured DIP facility.

The DIP facility is set to mature in 60 days and bear interest at 8% per annum, payable in kind.

Sale track

The pre-packaged plan provides a pivot to a potential sale transaction and allows the debtors to run a sale process concurrently with the reorganization process.

The company said this will allow it to determine through a market check if a higher and better transaction exists as an alternative to the reorganization transaction.

According to the proposed bid procedures filed Sunday, the bid deadline would be 6 p.m. ET on Nov. 10, an auction would be scheduled for Nov. 13, and a confirmation and sale hearing would take place on Nov. 29.

Reorganization track

The contemplated reorganization transaction will result in Akumin no longer being publicly listed.

The existing Stonepeak note, totaling about $470 million, will be canceled and converted into common shares of the company.

In addition, Stonepeak will invest $130 million in new money (reduced by the DIP facility) into the company as a capital contribution.

Other than the notes that are exchanged for cash through a reverse Dutch election opportunity, the company’s senior secured notes due 2025 will be exchanged for new senior secured notes with a maturity of Aug. 1, 2027 and an increased interest rate.

Additionally, the company’s senior secured notes due 2028 will be exchanged for new senior secured notes with the same maturity date but an increased interest rate.

As part of the transaction, Akumin's existing common stockholders will receive a total of $25 million in cash as well as contingent value rights (CVRs) for their shares.

In the event Stonepeak provides any other new money contributions at or prior to the closing of the transaction, the new money and DIP facilities will convert to equity at closing and reduce the $130 million investment amount on a dollar-for-dollar basis.

Stonepeak will also make $60 million of the proceeds from its investment available for a reverse Dutch election opportunity for the company’s notes due 2025 and the notes due 2028.

According to the disclosure statement, other secured claims, other priority claims and general unsecured claims are unimpaired by the plan.

Akumin is a Plantation, Fla.-based outpatient diagnostic imaging services provider. The company filed bankruptcy on Oct. 22 under Chapter 11 case number 23-90827.

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