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  • GenesisCare’s Plan of Reorganisation Confirmed by Bankruptcy Court with Overwhelming Support from Voting Creditors
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2023-11-22T00:00:00.000+11:00

GenesisCare’s Plan of Reorganisation Confirmed by Bankruptcy Court with Overwhelming Support from Voting Creditors

GenesisCare’s Plan of Reorganisation Confirmed by Bankruptcy Court with Overwhelming Support from Voting Creditors

SYDNEY, 22 November 2023 - GenesisCare (or the “Company”), one of the world’s largest providers of integrated cancer care, today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has confirmed its Chapter 11 Plan of Reorganisation (the “Plan”). The Plan received support from approximately 95% of voting creditors by amount, and confirmation is a major milestone in the company’s efforts to transform its operations and capital structure to position itself for long-term sustainable growth and to continue providing critical care to patients. The Plan provides a significant deleveraging of the Company’s balance sheet, reducing total debt by approximately US$1.7 billion from approximately US$2 billion prior to filing for Chapter 11.

GenesisCare has obtained commitments for new financing facilities, including US$20 million in incremental debtor-in-possession (DIP) financing and up to US$48 million in new money exit financing. GenesisCare has filed the necessary legal motions to obtain access to this financing in the coming weeks before it emerges from Chapter 11 protection, which is planned to take place in January 2024, subject to regulatory approvals and completion of other implementation steps.

“Today marks the beginning of a new and exciting chapter for GenesisCare,” said David Young, GenesisCare’s Chief Executive Officer. “Both the strong support we received for the confirmation of our Plan as well as our progress in securing new money exit financing demonstrate the confidence our key stakeholders have in GenesisCare’s future potential as we execute on our strategic plan. We look forward to continuing to support our doctors and other teammates as they work to deliver better life outcomes for our patients.”

GenesisCare is continuing to execute its previously stated plan to separate its U.S. business from its business in Australia, Spain and the UK. GenesisCare is pursuing offers for individual U.S. geographies or practices that have the potential to provide the best and highest value. Over the past six months, the U.S. business has experienced a financial turnaround that will allow it to operate sustainably and continue to provide patient care as part of GenesisCare while the U.S. leadership team continues to implement the separation plan.

In light of this turnaround, the Company’s lenders have agreed to backstop a financing commitment that will allow GenesisCare to continue operating in the U.S. as a sister company to the Australia, Spain, and UK businesses in the event the Company does not determine that the sale process provides the best and highest value.

“The strong interest we received from a wide variety of buyers from across the U.S. is a reflection of what we have long known―that GenesisCare’s U.S. business benefits from an incredible team, a desirable footprint and a proven ability to care for patients,” said Dr. Shaden Marzouk, President of GenesisCare U.S. “Thanks to the efforts of our physicians and staff, we have begun to place our practices around the U.S. on solid financial and operational footings that make them attractive to qualified buyers who will ensure that these practices continue to play a vital role in the communities we serve.

SYDNEY, 22 November 2023 - GenesisCare (or the “Company”), one of the world’s largest providers of integrated cancer care, today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has confirmed its Chapter 11 Plan of Reorganisation (the “Plan”). The Plan received support from approximately 95% of voting creditors by amount, and confirmation is a major milestone in the company’s efforts to transform its operations and capital structure to position itself for long-term sustainable growth and to continue providing critical care to patients. The Plan provides a significant deleveraging of the Company’s balance sheet, reducing total debt by approximately US$1.7 billion from approximately US$2 billion prior to filing for Chapter 11.

GenesisCare has obtained commitments for new financing facilities, including US$20 million in incremental debtor-in-possession (DIP) financing and up to US$48 million in new money exit financing. GenesisCare has filed the necessary legal motions to obtain access to this financing in the coming weeks before it emerges from Chapter 11 protection, which is planned to take place in January 2024, subject to regulatory approvals and completion of other implementation steps.

“Today marks the beginning of a new and exciting chapter for GenesisCare,” said David Young, GenesisCare’s Chief Executive Officer. “Both the strong support we received for the confirmation of our Plan as well as our progress in securing new money exit financing demonstrate the confidence our key stakeholders have in GenesisCare’s future potential as we execute on our strategic plan. We look forward to continuing to support our doctors and other teammates as they work to deliver better life outcomes for our patients.”

GenesisCare is continuing to execute its previously stated plan to separate its U.S. business from its business in Australia, Spain and the UK. GenesisCare is pursuing offers for individual U.S. geographies or practices that have the potential to provide the best and highest value. Over the past six months, the U.S. business has experienced a financial turnaround that will allow it to operate sustainably and continue to provide patient care as part of GenesisCare while the U.S. leadership team continues to implement the separation plan.

In light of this turnaround, the Company’s lenders have agreed to backstop a financing commitment that will allow GenesisCare to continue operating in the U.S. as a sister company to the Australia, Spain, and UK businesses in the event the Company does not determine that the sale process provides the best and highest value.

“The strong interest we received from a wide variety of buyers from across the U.S. is a reflection of what we have long known―that GenesisCare’s U.S. business benefits from an incredible team, a desirable footprint and a proven ability to care for patients,” said Dr. Shaden Marzouk, President of GenesisCare U.S. “Thanks to the efforts of our physicians and staff, we have begun to place our practices around the U.S. on solid financial and operational footings that make them attractive to qualified buyers who will ensure that these practices continue to play a vital role in the communities we serve.