Drive DeVilbiss Healthcare in talks to restructure $600m debt ahead of speculated “liquidity crunch”
A report from the Wall Street Journal (WSJ) in North America has indicated mobility and independent living manufacturing giant Medical Depot, trading as Drive DeVilbiss Healthcare, has initiated talks with its senior lenders to restructure its $600 million debt.
Claiming that the talks come “in advance of an expected liquidity crunch,” the WSJ reported on the 4th September 2019 that Drive DeVilbiss Healthcare’s lenders have recently signed a non-disclosure agreement, providing exclusive access to provided information relating to the supplier.
The report suggests the company’s North American business is attempting to reach an out-of-court deal to restructure its debt to avoid filing for bankruptcy.
Manufacturing powered mobility products, walking aids, beds, moving and handling equipment, aids for daily living and more, Drive DeVilbiss Healthcare is one of the industry’s largest and most established product suppliers.
Formed in July 2015 when Drive Medical acquired DeVilbiss Healthcare, its largest and final acquisition following a run of eight acquisitions over just a 12-month period, purchasing companies including HurryWorks, Columbia Medical, Park House Healthcare, and Specialised Orthotic Services.
Following the merger of Drive and DeVilbiss, the company was purchased by private equity firm Clayton, Dubilier & Rice (CD&R) for a speculated $800 million in August 2016 from its owners Ferrer Freeman & Company.
According to the WSJ, a group of lenders and advisors is working on the restructuring, with advisors from law firm Debevoise & Plimpton LLP representing CD&R.
It is not yet known if Drive DeVilbiss Healthcare’s restructure across the pond will have any bearing on UK mobility dealers in regards to pricing or product availability.
Drive DeVilbiss has declined to provide a comment at this time.https://thiis.co.uk/report-suggests-drive-devilbiss-healthcare-in-talks-to-restructure-600m-debt-ahead-of-speculated-liquidity-crunch/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/09/drive-devilbiss.jpg?fit=900%2C550&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/09/drive-devilbiss.jpg?resize=150%2C150&ssl=1NewsroomSupplier Newsbankruptcy,CD&R,Columbia Medical,Debevoise & Plimpton LLP,DeVilbiss Healthcare,Drive DeVilbiss healthcare,Drive Medical,HurryWorks,Medical Depot,North American,Park House Healthcare,Specialised Orthotic Services,Wall Street JournalA report from the Wall Street Journal (WSJ) in North America has indicated mobility and independent living manufacturing giant Medical Depot, trading as Drive DeVilbiss Healthcare, has initiated talks with its senior lenders to restructure its $600 million debt.Claiming that the talks come “in advance of an expected liquidity...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine