Moving the HME Industry Forward

General Healthcare

Rotech Revamp Continues During Bankruptcy Reorganization

September 2, 2013

ORLANDO, FL – Officials at Rotech Healthcare Inc say they expect to “formally emerge from Chapter 11” next month. The statement comes on the heels of the U.S. Bankruptcy court’s approval of the Florida-based company’s Second Amended Join Plan of Reorganization.

The reorganization plan includes $358 million of exit financing commitments received from Wells Fargo, and certain existing holders. The reorganization plan was confirmed at a court hearing in Delaware and was supported by the Statutory Committee of Unsecured Creditors. Creditors entitled to vote overwhelmingly voted in favor of the reorganization plan.

At the time that the Company (considered one of the largest nationwide HME providers) filed its reorganization cases in early April, the Company vowed to and emerge from Chapter 11 within 90 to 150 days. “We said at the outset this would be a swift passage through the reorganization process and it has been,” said Steven P. Alsene, Rotech’s president and CEO via press release. “We have successfully completed an important milestone in the financial restructuring that positions Rotech to operate successfully in today’s very competitive environment.

“We appreciate the strong support the Company has received from its lenders, creditors, suppliers, customers and especially its employees,” continued Alsene. “With a restructured balance sheet, new long-term financing and a seasoned management team, Rotech is well-positioned for future leadership in the industry.”

Under the reorganization plan, existing common stock will be cancelled and new common stock of reorganized Rotech will be distributed to holders of 10.5% Senior Second Lien Secured Notes.