Joerns Healthcare pre-packaged reorganization plan confirmed by court

By Caroline Salls

Pittsburgh, July 25 – Joerns WoundCo. Holdings, Inc., doing business as Joerns Healthcare, obtained confirmation of its pre-packaged plan of reorganization, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Thursday’s order also approved the disclosure statement for the plan.

As previously reported, the company’s restructuring plan is supported by the majority of its lenders and noteholders.

Joerns said the plan will eliminate a substantial amount of debt and provide operating capital during the restructuring process and beyond.

The company said the restructuring would equitize the majority of its pre-bankruptcy first-lien obligations and all of the pre-bankruptcy second-lien obligations, result in a substantial de-levering of the debtors’ capital structure, reducing their financial debt to $80 million from $400 million, while providing new financing to fund the Chapter 11 cases and the debtors’ go-forward business.

The proposed restructuring would pay in full all other allowed claims, including general unsecured claims.

Joerns WoundCo, which does business as Joerns Healthcare, is a Charlotte, N.C.-based health care equipment provider. The company filed bankruptcy on June 25 under Chapter 11 case number 19-11401.

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