- Medical equipment maker Invacare Corporation ( NYSE: IVC ) lost ~20% in the pre-market trading Wednesday after announcing that the company and two U.S. based subsidiaries filed for voluntary Chapter 11 bankruptcy.
- The cases filed in the Bankruptcy Court for the Southern District of Texas does not include Invacare’s ( IVC ) international operations and are not expected to impact the company’s ability to serve its global clientele.
- The cases follow an financial restructuring agreement the company inked with almost all of its debt holders and all of the holders of convertible senior secured notes and holders of most of its convertible senior unsecured notes.
- Per the terms of the agreement known as Restructuring Support Agreement, Invacare ( IVC ) is allowed to reduce its debt by ~$240M and provides the company with $60M equity capital to repay certain debt and fund its transformation plan.
- “The company expects to emerge with significantly less debt on its balance sheet and will secure additional liquidity to support long-term growth,” Invacare’s ( IVC ) recently appointed Chief Executive Geoff Purtill noted.
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Invacare falls on bankruptcy filing