Physiotherapy Holdings granted final approval for cash collateral use

By Jim Witters

Wilmington, Del., Dec. 6 - Physiotherapy Holdings, Inc. received final approval for the use of $11.1 million of cash collateral, according to a Dec. 6 filing with the U.S. Bankruptcy Court for the District of Delaware.

Interim access to cash collateral had been granted Nov. 14.

As previously reported, Physiotherapy entered into a plan support agreement with its bridge loan lenders, consenting noteholders and consenting shareholders on Oct. 10.

The proposed plan would reduce the debtors' total funded debt, including interest, to roughly $144 million from $375 million, provide long-term financing and access to incremental funding.

The financing and restructuring will also fund a litigation trust to consolidate and coordinate the prosecution of claims and causes of action resulting from an alleged overstatement of revenue by the previous owners.

A combined hearing to approve the disclosure statement and confirm the Chapter 11 plan of reorganization is scheduled for 1:30 p.m. ET on Dec. 17.

Physiotherapy, an Exton, Pa.-based provider of outpatient rehabilitation services, filed for bankruptcy on Nov. 13. Its Chapter 11 case number is 13-12965.

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