US Court confirms Joerns’ debt relief plan as company prepares to emerge from bankruptcy in coming weeks
Following the announcement that Joerns Healthcare LLC, the American operation for global patient handling manufacturer Joerns Group, was filing for bankruptcy amid substantial debt, a restructuring plan has been agreed, enabling the company to continue operating.
Joerns Healthcare LLC has had its chapter 11 debt reorganisation plan for the company and its domestic subsidiaries confirmed by the United States Bankruptcy Court for the District of Delaware.
Known as one of the most complex forms of bankruptcy, chapter 11 generally provides for the restructuring of a business’ debts and obligations, enabling the company in question to continue trading whilst paying creditors over time.
Joerns Healthcare LLC says it expects to complete its restructuring and successfully emerge from bankruptcy over the coming weeks, whilst being well-positioned for growth and profitability.
The restructuring plan will reduce the company’s debt by more than $320 million, whilst providing up to $40 million of new financing to support Joerns’ ongoing operations and continued investments.
Importantly, the plan also provides for all the company’s unsecured creditors to be paid in full on their allowed claims, ensuring minimal operational or business disruption.
Amid the bankruptcy, David Johnson, the organisation’s Chief Operating Executive, announced his resignation, with Joerns Senior Vice President and Chief Financial Officer John Regan now fulfilling the role’s responsibility while the company searches for a new CEO.
“The successful execution of our restructuring plan significantly enhances our company’s long-term viability and competitive position,” said John.
“By reducing our debt load, we can increase our investments in several key growth opportunities and enhance our efforts to continue delivering exceptional an customer experience. This plan confirmation is an important step in our 130-year history to continue our drive every day to fulfil our commitment to be an exceptional company which improves the lives of others.”
After emerging from the chapter 11 plan, Joerns Healthcare LLC will continue under new ownership, composed of a number of
Upon emergence, Joerns Healthcare LLC will move forward under new ownership composed of its pre-petition 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).
The news comes as Joerns Healthcare Ltd, the UK arm of the global moving and handling manufacturer, reported substantial increases in its turnover and profits in the year ended 31 December 2018.
Read more about Joerns Healthcare LLC’s long history in the mobility market, including being one of the founding pillars of Sunrise Medical.https://thiis.co.uk/us-court-confirms-joerns-debt-relief-plan-as-it-hopes-to-emerge-from-bankruptcy-in-coming-weeks/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/07/Joerns-Healthcare-LLC.jpg?fit=800%2C505&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/07/Joerns-Healthcare-LLC.jpg?resize=150%2C150&ssl=1NewsroomSupplier Newschapter 11,David Johnson,debt,Joerns Healthcare LLC,Joerns Healthcare Ltd,John Regan,moving and handling,patient handling,restructuring,United states Bankruptcy CourtFollowing the announcement that Joerns Healthcare LLC, the American operation for global patient handling manufacturer Joerns Group, was filing for bankruptcy amid substantial debt, a restructuring plan has been agreed, enabling the company to continue operating. Joerns Healthcare LLC has had its chapter 11 debt reorganisation plan for the company...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine