Akumin’s Chapter 11 plan of reorganization effective as of Feb. 6

By Sarah Lizee

Olympia, Wash., Feb. 6 – Akumin Inc.’s pre-packaged Chapter 11 plan of reorganization went into effect on Tuesday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the plan was confirmed on Nov. 30.

The company 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.

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

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

The auction, which had been scheduled for Nov. 13, was canceled since the company did not receive any qualified bids by the deadline.

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

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

In addition, Stonepeak agreed to invest $130 million in new money (reduced by a debtor-in-possession 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 were to 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 were to 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 were to 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 were to convert into equity at closing and reduce the $130 million investment amount on a dollar-for-dollar basis.

Stonepeak also agreed to 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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