World Health Alternatives enters agreement resolving asset sale issues

By Caroline Salls

Pittsburgh, April 24 - World Health Alternatives, Inc. requested court approval of an agreement between the company, its official committee of unsecured creditors and CapitalSource Finance, LLC that resolves issues related to the proposed sale of substantially all of the company's assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the agreement, all of the proceeds from the asset sale and all cash that has not been swept into a concentration account under the company's debtor-in-possession financing agreement will be paid to CapitalSource to satisfy pre- and post-bankruptcy debt, with the payment not to exceed $42.5 million.

Within two business days of the court approval of the agreement, CapitalSource will pay a $1.63 million collateral carveout from its lien to be distributed to World Health's general unsecured claims and used to investigate and prosecute estate causes of action.

A hearing is scheduled for May 11.

Based in Pittsburgh, World Health Alternatives provides staffing services for the medical industry. It filed for bankruptcy on Feb. 20. Its Chapter 11 case number is 06-10166.

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