Rotech Healthcare Says It Will Restructure in Bankruptcy

Rotech Healthcare Inc. (ROHI), a provider of home respiratory products, said it will file to restructure through a pre-arranged plan under Chapter 11 of the U.S. Bankruptcy Code. “This is a game-changer for Rotech that we believe will allow us to grow and thrive,” Steven Alsene, chief executive officer of Rotech, said in an interview today. The Orlando-based company said it expects to file the consensual plan and petitions in the coming weeks. Under the contemplated restructuring, Rotech’s $290 million in 10.5 percent second-lien notes due in 2018 would be converted to equity; holders of a $23.5 million term loan would be paid in full and the $230 million of 10.75 percent first-lien notes would be amended and the maturity potentially extended, Rotech said today in a statement. Orlando-based Rotech’s predecessor company also filed for Chapter 11 protection in 2000, along with its then-parent, Integrated Health Services, and was spun-off in 2002 as a separate entity, it said at the time. The company provides home-based equipment to help people with breathing disorders including Chronic Obstructive Pulmonary Disease (COPD). The company has about 420 operating centers in 49 states. Read more at http://www.bloomberg.com/news/2013-03-15/rotech-healthcare-says-it-will-restructure-in-bankruptcy.html