CHARLOTTE, N.C., July 26, 2019 /PRNewswire/ -- Joerns Healthcare, a leading durable medical equipment manufacturer and supplier, announced today that the United States Bankruptcy Court for the District of Delaware has confirmed the Chapter 11 plan for the company and its domestic subsidiaries. Joerns expects to complete its restructuring and successfully emerge from bankruptcy over the coming weeks.
The restructuring plan reduces the company's debt by more than $320 million, while providing up to $40 million of new financing to support Joerns' ongoing operations and continued investments. Notably, the plan provides for all the company's unsecured creditors to be paid in full on their allowed claims, ensuring minimal operational or business disruption.
Upon emergence, the Company will move forward under new ownership composed of its prepetition secured lenders, who have designated as initial board members Patrick Hayes (Golub Capital, Managing Director), Patrick Bartels (Redan Advisors, Managing Member), and Brent Buckley (Benefit Street Partners, Managing Director). Certain additional board members are expected to be appointed on or after emergence.
"The successful execution of our restructuring plan significantly enhances our company's long-term viability and competitive position," said Joerns Senior Vice President and Chief Financial Officer John Regan. "By reducing our debt load, we can increase our investments in several key growth opportunities and enhance our efforts to continue delivering an exceptional customer experience. This plan confirmation is an important step in our 130-year history to continue our drive every day to fulfill our commitment to be an exceptional company which improves the lives of others."
CEO David Johnson recently announced his resignation. Regan is fulfilling the CEO's operational responsibilities while the company searches for a new CEO.
Court filings and other information related to these chapter 11 cases are available at https://dm.epiq11.com/case/joerns/info, which is a website administered by the Company's claims agent, Epiq Corporate Restructuring, LLC ("Epiq"). Parties may obtain electronic notification of court filings through the Epiq website or may register for email notices by completing the Court's registration form that can be accessed at http://www.deb.uscourts.gov/general-information.
White & Case LLP is serving as legal counsel to the Company, and Fox Rothschild LLP is serving as legal co-counsel. Moelis & Company LLC is acting as financial advisor and investment banker to Joerns, and Conway MacKenzie, Inc. is the Company's restructuring advisor.
King & Spalding LLP is serving as legal counsel to the First Lien Steering Committee and DIP Lenders and FTI Consulting is acting as financial advisor to the First Lien Steering Committee and DIP Lenders. Proskauer Rose LLP is serving as legal counsel and Landis Rath & Cobb LLP is serving as co-counsel to prepetition secured lender PineBridge. Shearman & Sterling LLP is serving as legal counsel to Ankura Trust Company, LLC, as First Lien Agent and DIP Agent.
About Joerns Healthcare
Joerns Healthcare is a leading vertically-integrated manufacturer, distributor, and national service provider of healthcare beds, therapeutic support surfaces, safe patient handling products, and negative pressure wound therapy devices, with a number of industry-leading brands, including Ultracare® XT bed frame and Hoyer® lifts. Joerns helps healthcare providers, across the care continuum, solve complex medical equipment challenges, improve patient and caregiver safety and speed patient healing with its renowned Purple Shirt service. Headquartered in Charlotte, North Carolina with 1,700 employees throughout North America and Europe, Joerns Healthcare is committed to delivering solutions that improve the lives of patients and care providers.
For more information, visit www.Joerns.com.
SOURCE Joerns Healthcare