TLC Vision gets court OK to increase unsecured creditor cash cap

By Caroline Salls

Pittsburgh, May 19 - TLC Vision (USA) Corp. received court approval of an agreement with its official committee of unsecured creditors and plan of reorganization sponsors to increase the cash pool cap for general unsecured creditors in exchange for a waiver of a plan support agreement condition, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the cash pool cap will be increased to the greater of 90% of allowed claims or $9.5 million from the greater of 90% of allowed claims or $9 million.

The company said the waiver will allow plan transactions to close by May 20, which is TLC's expected bankruptcy emergence date.

The plan support agreement condition being waived requires some affiliated eye surgeons and their affiliated operating entities to consent to an ownership and management structure for their businesses in the Philadelphia area.

Under the agreement, the sponsors will continue to negotiate with the doctors after the plan transactions close.

TLC Vision, a Mississauga, Ont.-based eye care services company, filed for bankruptcy on Dec. 21. Its Chapter 11 case number is 09-14473.

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