Joerns Healthcare’s Reorg Plan Approved As Creditors Get Equity

Joerns WoundCo Holdings Inc. won approval of its bankruptcy reorganization plan, giving its secured creditors nearly all shares of the medical equipment maker.

The Chapter 11 plan, approved by the Delaware bankruptcy court July 25, wipes out about $320 million of its debt while giving 95% of equity to senior lien creditors. The other 5% goes to second lien debt holders, according to court filings.

Joerns, which also goes by Joerns Healthcare, also plans to pay all other claims, including priority and unsecured creditors’ claims.

Joerns, which filed for Chapter 11 a month ago, will also convert its bankruptcy financing ...