Joerns Healthcare pre-packaged plan of reorganization takes effect

By Caroline Salls

Pittsburgh, Aug. 21 – Joerns Healthcare announced Wednesday that its reorganization is complete following the effectiveness of its court-approved plan of reorganization.

As previously reported, Joerns WoundCo. Holdings, Inc.’s pre-packaged plan of reorganization was confirmed on July 25 by the U.S. Bankruptcy Court for the District of Delaware. Joerns WoundCo does business as Joerns Healthcare.

According to a news release, the reorganization reduced the company’s debt by more than $320 million, while providing $40 million in new capital to support Joerns’ ongoing operations and continued investments.

“We’re extraordinarily well-positioned now to further extend our industry leadership in improving the lives of others, as exemplified by the company’s introduction of four new products during the past six months that serve patients across the care continuum,” senior vice president and chief financial officer John Regan said in the release.

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 will 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 restructuring will pay in full all other allowed claims, including general unsecured claims.

Joerns 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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