Bankrupt Onex Unit Carestream Wins Reorganization Plan Approval

Carestream Health won preliminary court approval of its bankruptcy plan that will cut the medical imaging product maker’s debt by about $470 million and fully repay unsecured creditors.

Bankruptcy Judge J. Kate Stickles said at a Wednesday hearing she will approve the prepackaged plan—with debt-for-equity terms negotiated with creditors before the actual Chapter 11 filing—after Carestream makes some tweaks.

Carestream, which is a subsidiary of Canada-based Onex Corp., filed for Chapter 11 on Aug. 23 with about $1 billion in outstanding debt. The debt includes $507.7 million in first-lien loan debt, and $448.2 million in second-lien term loan indebtedness, according ...