Milbank has successfully represented the First Lien Ad Hoc Committee and DIP Lenders to 21st Century Oncology Holdings, Inc. and its direct and indirect subsidiaries (the “Company”) in connection with the restructuring of the Company’s outstanding indebtedness.
21st Century Oncology, the largest global provider of integrated cancer care services, sought chapter 11 bankruptcy protection on May 25, 2017 in the US Bankruptcy Court for the Southern District of New York after reaching an agreement in principle with its senior lenders and bondholders on the terms of a comprehensive debt restructuring.
The Company’s Reorganization Plan (the “Plan”) was confirmed on January 9, 2018 and is expected to emerge from chapter 11 on January 16, 2018. Upon emergence, the Company is expected to be poised for long-term growth and have the financial flexibility to continue to be at the forefront of cancer care.
Under the Plan, the Company will reduce its $1.14 billion in total liabilities by more than $500 million. The Plan also preserves the prepetition value of the claims held by Milbank’s client, providing for the prepetition first lien loan obligations to be converted into a new term loan facility, while the senior notes are converted into equity. Certain holders of the senior notes, who also held a minority share of the prepetition first lien loan obligations, agreed to subordinate $200 million of the prepetition obligations to the new term loan facility.
The Milbank team was led by partners Dennis Dunne and Evan Fleck (Financial Restructuring); and included partners Marc Hanrahan (Leveraged Finance), Aaron Renenger (Litigation & Arbitration), Fiona Schaeffer (Antitrust); and associates Matthew Brod, Paul Springer (Financial Restructuring), Erin Culbertson (Litigation & Arbitration), and Sumita Ahuja (Leveraged Finance).
