- The holders of the $23.5 million Term Loan would be paid in full;
- The $230 million of 10.75% First Lien Notes would be amended and the maturity potentially extended;
- The $290 million in 10.5% Second Lien Notes would be converted into 100% of the common equity of the reorganized Company, thereby eliminating this tranche of secured debt;
- All of the Company’s outstanding shares would receive a distribution of 10 cents per share (provided that the total amount paid on account of such interests does not exceed $2.62 million) and then be cancelled; and
- Trade creditors and vendors would be paid in full in the ordinary course of business as long as they maintain or reinstate existing payment terms.
Rotech Healthcare Reaches Agreement In Principle With Its Major Debtholders On Debt Reduction And Restructuring
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