Benevis files Chapter 11 bankruptcy to complete recapitalization, sale

By Caroline Salls

Pittsburgh, Aug. 3 – LT Smile Corp., along with its Benevis Holding Corp., Benevis Corp., Benevis, LLC, Benevis Affiliates, LLC and Benevis Informatics LLC subsidiaries, filed Chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court for the Southern District of Texas to complete a recapitalization and sale of the business, and to improve its balance sheet and operating position, according to a news release.

Lender entity New Benevis Holdco, Inc. will serve as the stalking horse bidder for the court-supervised sale process.

New Benevis has agreed to credit bid the amount of its secured claims, as well as to pay cure costs associated with the business and assume liabilities.

The company said Benevis and its employees will continue their normal operations throughout the process. None of the company’s supported dental practices are part of the Chapter 11 filing.

Benevis said it has secured committed financing from its current lenders; including New Mountain Finance Corp. and several of its credit investing affiliates, to bolster liquidity and enhance ongoing operations during the reorganization process.

The company said the proposed reorganization and sale process is intended to provide access to incremental investment and growth capital.

Benevis and its supported practices have been taking steps to adapt to a changing marketplace severely impacted by the Covid-19 pandemic and other economic challenges, the release said.

“The additional financing and the reorganization process will help up strengthen our balance sheet and solidify our path to future success,” Benevis chief financial officer Scott Hornbuckle said in the release.

In conjunction with the bankruptcy filing, the company obtained a commitment for $15 million in new-money debtor-in-possession financing.

The DIP financing package also includes a roll-up of $5 million in pre-bankruptcy obligations.

BMO Harris Bank, NA is the DIP financing agent.

The facility is scheduled to mature on Nov. 5.

Interest will accrue at the Base rate plus 900 basis points or Libor plus 1,000 bps.

The company is seeking interim access to $10 million of the new-money financing.

According to court documents, Benevis has $100 million to $500 million in both assets and debt.

Benevis’s legal adviser for the reorganization is Jackson Walker. Conway Mackenzie and Lincoln International LLC are serving as financial advisers.

Marietta, Ga.-based Benevis is a comprehensive dental practice support services company. The Chapter 11 case number is 20-33918.

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