May 25, 2017 / 3:55 PM / 2 months ago

BRIEF-21St Century Oncology reaches agreement with lenders, bondholders on debt restructuring

2 Min Read

May 25 (Reuters) - 21st Century Oncology Holdings Inc :

* Reaches agreement in principle with lenders and bondholders on comprehensive debt restructuring that includes new equity investment and would reduce long-term net debt by over $500 million

* During the chapter 11 process company expects to operate its business in the ordinary course, without disruption

* Parties intend to implement the balance sheet restructuring through a chapter 11 process

* In conjunction with chapter 11 filing, some of co's senior lenders committed to provide up to $75 million in capital through dip financing

* On May 25, co and some of its U.S. Affiliates filed voluntary chapter 11 petitions to restructure in U.S. Bankruptcy court

* Company's non-U.S. Subsidiaries were not included in the filing and are unaffected by the chapter 11 process

* "Intend to use the chapter 11 process to resolve certain legacy litigation liabilities that have been a source of uncertainty"

* $75 million in new cash infusion will be used by the company to pay off any borrowings under the dip facility in full

* Asked court to approve payment of all employee wages, salaries in ordinary course of business, expects court to approve request Source text for Eikon: Further company coverage:

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