LCI Holdco Prepares For Emergence From Bankruptcy
Company receives court approval of three proposed transactions
PLANO, Texas, April 4, 2013 /PRNewswire/ -- The United States Bankruptcy Court for the District of Delaware this week approved a proposed transaction between LCI Holdco, LLC (the Company), the parent company of LifeCare Holdings Inc., and Hospital Acquisition, LLC, for the sale of substantially all of LCI assets. Hospital Acquisition, LLC, is a vehicle formed and supported by LifeCare's senior secured lenders and has been the stalking horse purchaser in the Company's pending Chapter 11 cases. The transaction is expected to close this summer pending regulatory approvals and the satisfaction of customary closing conditions.
"We will emerge from this process as a stronger organization with a viable, sustainable capital structure," said LifeCare Holdings Chairman and Chief Executive Officer Phillip B. Douglas. "Throughout this process, our clinical teams have remained singularly focused on the care of our patients. I commend our employees across the country for their unwavering commitment quality care, and to the patients and communities they serve."
Silver Point Capital, one of LifeCare's senior secured lenders, expressed confidence in the Company's growth strategy once the transaction is complete. "The Company's clinical excellence is now supported by a much stronger balance sheet, and they are well positioned to emerge from this process as the nation's leading provider of long term acute care."
The Bankruptcy Court also approved an Interim Management Agreement between wholly-owned LCI subsidiary Complex Care Hospital of Idaho ("CCHI") and Vibra Hospital of Boise, LLC, an affiliate of Vibra Healthcare, LLC ("Vibra"), an operator of Long Term Acute Care (LTAC) hospitals and inpatient rehabilitation hospitals. Under the terms of the management agreement, Vibra now assumes day-to-day operations of the Boise hospital as LifeCare continues its responsibilities for billing, collections and payment of employees.
Additionally, the Court scheduled a hearing for May 7th to consider the proposed sale of substantially all CCHI assets to the Vibra affiliate. Pending Bankruptcy Court and regulatory approvals, and the satisfaction of customary closing conditions, the transaction is expected to close this summer.
Operations at all LifeCare subsidiaries continue in the ordinary course as the company prepares to emerge from the bankruptcy process.
Information about the Company's Chapter 11 cases, including access to court documents, can be obtained in the News section of the Company's website at www.Lifecare-Hospitals.com.
About LifeCare Holdings, Inc.
LifeCare, based in Plano, Texas, currently operates 27 long term acute care hospitals located in ten states. Long-term acute care hospitals specialize in the treatment of medically complex patients who typically require extended hospitalization. For more information on LifeCare, visit our website at www.lifecare-hospitals.com.
This press release includes forward-looking statements regarding, among other items, operations, proposed regulations and their possible effect on the Company's results. Such statements are subject to a number of uncertainties and risks that could significantly affect current plans. Furthermore, actual results may differ materially from those experienced or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, risks relating to operating in a regulated environment, implementing our business plan, maintaining relationships with physicians in our markets, availability of sufficient nurses and therapists, competition, retaining key management, ability to service our debt requirements, litigation matters and availability of insurance. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. As a result, you should not place undue reliance on forward-looking statements, which reflect management's views only as the date hereof. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE LCI Holdco, LLC
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