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Angelica Chapter 11 Bankruptcy

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Privately-held Angelica (f/k/a Angelica Healthcare and Angelica Image Apparel) and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-10870. The Company, which provides textile rental services, is represented by Matthew S. Barr of Weil, Gotshal & Manges.

The Company also announced its entry into an asset purchase agreement (APA) with an entity affiliated with KKR, under which the KKR affiliate will acquire substantially all of Angelica’s assets as a going concern in a transaction valued at approximately $125 million plus certain assumed liabilities.

Under the terms of the APA, the KKR affiliate will serve as the “stalking horse bidder” in a Court-supervised sale process, pursuant to Section 363 of the Bankruptcy Code. Accordingly, the APA is subject to higher and better offers, among other conditions.

David A. Van Vliet, president and C.E.O. of Angelica, comments, “We believe the actions we are taking will strengthen our financial foundation and allow Angelica to serve our customers better. Over the last several months, we undertook a comprehensive review of our strategic options with the support of our private equity investors and with the help of our outside advisors. The decision to pursue a court-supervised sale of our business as a going concern is the culmination of this process, and we believe it will provide Angelica with financial flexibility and the resources needed to invest and grow.”

In conjunction with the proposed transaction, Angelica is seeking Court approval of a $65 million debtor-in-possession financing facility from Wells Fargo Capital Finance to support the Company’s continued operations during the Court-supervised sale process. Angelica’s Chapter 11 petition indicates assets greater than $100 million.

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The post Angelica Chapter 11 Bankruptcy appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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