Envision Healthcare disclosure statement hearing scheduled for Aug. 2

By Sarah Lizee

Olympia, Wash., June 30 – The hearing on Envision Healthcare Corp.’s disclosure statement for its Chapter 11 plan is scheduled for Aug. 2, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The company filed the documents on Thursday. The plan contemplates the previously announced restructuring support agreement the company entered into with its key stakeholders in May.

The terms of the RSA establish the framework for a restructuring that will position Envision and its AmSurg unit for future growth as two separate businesses.

Specifically, the key terms of the RSA include the following:

• Repayment or refinancing of the company’s asset-based lending facility;

• Equitization of first-out term loan claims and second-out term loan claims;

• Issuance of three-year warrants convertible into up to 5% of the new common stock of the reorganized Physician Services, distributed to those holders of third-out, fourth-out and unsecured notes claims on a pro rata basis to the extent holders vote to accept the plan as a class;

• If holders of third-out, fourth-out and unsecured notes claims vote to reject the plan, the claims will be canceled without any distribution;

• Repayment or refinancing of the AmSurg revolving credit facility;

• Repayment of the AmSurg first-lien facility;

• Impairment of general unsecured claims at debtors comprising the AmSurg silo; and

• Cancellation of existing equity interest in Envision Healthcare.

Under the terms of the RSA, the AmSurg and Envision Physician Services businesses will be separately owned by some of their respective lenders.

AmSurg will purchase the surgery centers held by Envision for $300 million plus a waiver of intercompany loans held by AmSurg LLC.

All of Envision’s debt, with the exception of a revolver for working capital, will be equitized or canceled, deleveraging about $5.6 billion.

Envision is a Nashville-based provider of physician-led services and post-acute care and ambulatory surgery services. The company filed bankruptcy on May 15 under Chapter 11 case number 23-90342.

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