Eye Care Leaders receives approval of bid procedures, DIP facility

By Sarah Lizee

Olympia, Wash., Feb. 23 – Eye Care Leaders Portfolio Holdings, LLC received approval of bid procedures for its assets, according to an order filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

Eye Care Leaders said it is seeking a transaction incorporating a sale of all or a portion of the debtors’ assets or a going-concern sale, or a restructuring transaction under a confirmed Chapter 11 plan.

The company is seeking approval to choose one or more stalking horse bidders for the assets. Bid protections would include a 3% breakup fee. The bid protections are still subject to court approval.

The minimum bidding increment would be $250,000.

The bid deadline is 5 p.m. ET on April 5, an auction is scheduled for April 10, and a sale hearing is set for April 22.

DIP financing

The company also received interim approval of a replacement $8 million debtor-in-possession facility with Colorado Bankers Life Insurance.

Eye Care Leaders said that although the total commitment under the new facility will be the same as the prior facility with Create Capital, the economics are now more favorable to the debtors.

The new financing would carry a 10% non-default interest rate rather than 15%, and a 12% default interest rate rather than 17%.

There are also no origination, commitment, closing or other fees, other than paying the out-of-pocket fees, costs disbursements and expenses of the replacement DIP lender.

The financing also provides for more flexibility on the case milestones, the company said.

The company now has access to $1.3 million of the facility.

A final hearing is scheduled for March 11.

Eye Care Leaders is a Durham, N.C.-based practice management software provider for eye doctors. The company filed bankruptcy on Jan. 16 under Chapter 11 case number 24-80001.

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