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Joerns Healthcare Bankruptcy Includes Lender Deal to Slash Debt

June 26, 2019, 2:04 PM

The medical equipment manufacturer and distributor has arranged for $40 million in new financing through a DIP loan from its first-lien lenders.

  • Co. lists assets up to $500 million in bankruptcy petition and has total funded debt of about $400 million, Chief Financial Officer John Regan said in a court declaration
  • The bankruptcy plan would cut debt by $320 million First-lien lenders would get 95% of new stock and $40 million of pre-bankruptcy claims rolled into DIP Second lien lenders to get 5% of new stock
  • DIP loans to carry interest at Libor+600 per annum and will convert into a ...