GenesisCare emerges from bankruptcy, slashes debt by $1.7 billion

By Sarah Lizee

Olympia, Wash., Feb. 20 – GenesisCare Pty Ltd. completed its reorganization process and emerged from Chapter 11 bankruptcy on Friday, according to a press release.

Through the process, the company separated its U.S. business from its businesses in the rest of the world and right sized its balance sheet.

GenesisCare will now operate as four distinct businesses: a U.S. business, a business in Australia, one in the United Kingdom, and one in Spain. Each business will have its own funding and governance structures, including a separate board of directors, and will be responsible for its own strategy, business priorities and performance.

“Today marks an exciting milestone establishing GenesisCare U.S. as a stronger and more resilient organization that will continue to serve our communities with excellent patient care for a long time,” Shaden Marzouk, chief executive officer of GenesisCare U.S., said in the release.

As a reminder, the company’s Chapter 11 plan was confirmed on Nov. 22 by the U.S. Bankruptcy Court for the Southern District of Texas.

To finance the U.S. equitization restructuring, the debtors lined up a fully backstopped $261 million DIP-to-exit facility with the existing lenders that provided for $20 million in new money and refinanced the existing new-money DIP tranche in full.

The plan aimed to deleverage the debtors’ balance sheet by about $1.7 billion, pay ROW unsecured creditors in full, provide recovery to GC U.S. unsecured creditors, and allow the debtors to continue operating as a going concern.

Under the plan, holders of other secured claims were to receive payment in full in cash, reinstatement of the claims, or other payment leaving the claims unimpaired.

Holders of priority claims were to receive payment in full in cash or other treatment leaving the claims unimpaired.

Holders of senior facilities agreement claims were to receive their pro rata share of new warrants and distributable cash, if any, in line with a waterfall recovery.

Holders of shareholder loan claims were not to receive any property under the plan.

Holders of general unsecured claims against the ROW debtors were to have their claims reinstated or receive payment in full in cash on the effective date or the date due in the ordinary course of business.

Holders of class 5B-1 general unsecured claims against the U.S. debtors were to receive their pro rata share of 100% of the interests in a GUC trust. The trust will be funded with $4.5 million for distributions.

Holders of class 5B-2 general unsecured claims against the U.S. debtors were to receive their pro rata share of the $350,000 convenience class amount, which will be funded from the GUC cash pool.

Holders of class 5B-3 general unsecured claims against the U.S. debtors were to be entitled to pursue applicable insurance coverage, and the automatic stay and any injunction provided for in the plan will be lifted or modified to allow all the prosecution, defense, settlement and administration of their claims against any applicable insurer. These claimholders will not be entitled to a recovery from the GUC trust.

Holders of existing TopCo interests will not receive any distribution.

Holders of interests in U.S. TopCo were not to receive any distribution under the U.S. equitization restructuring. Otherwise, each existing interest in U.S. TopCo would be reinstated, distributed, contributed, set off, settled, canceled and released, or otherwise addressed.

GenesisCare is a cancer care provider with headquarters in Sydney. The company filed bankruptcy on June 1, 2023 under Chapter 11 case number 23-90614.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.