LifeCare Holdings and Affiliates Emerge From Chapter 11 Following Acquisition

The Chapter 11 plan of LCI Holding Company Inc., its subsidiary LifeCare Holdings Inc., and 33 affiliated debtors became effective on June 3 and the companies have emerged from Chapter 11 protection (In re LCI Holding Company Inc., Bankr. D. Del., No. 12-13319 (KG)).

The emergence was announced in a June 3 press release issued by the debtors’ purchaser, Hospital Acquisition LLC. Hospital Acquisition bought substantially all of the debtors’ assets for $320 million. The transaction, according to the press release, “results in a significant reduction in debt at lower interest rates. The [c]ompany’s new credit facility includes ...