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Orianna Health Systems Amended Plan and Disclosure Statement

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Orianna Health Systems filed with the U.S. Bankruptcy Court a Third Amended Joint Plan of Reorganization and a related Disclosure Statement. According to the Disclosure Statement, “The Successful Bid by the Plan Sponsor includes the following key components to be consummated pursuant to the Stock Purchase Agreement and the Plan: cash in the amount of $195,000,000; a 7-year, $30,000,000 subordinated note, with 6% cash interest payable, with principal payments beginning at the end of year 3 based on 15-year amortization; assumption of the Debtors’ paid time off (PTO) obligations in connection with employees of the Restructuring Portfolio; approximately $18,000,000 in affiliated entity claims will either be assumed by the Plan Sponsor or otherwise waived; agreement to provide transition services to the estates by the Plan Sponsor and/or its designees at a discounted rate for a period of six (6) months; establishing a tort claimants trust and funding the trust in the amount of $2,000,000, including provision of services to administer the trust and resolve the claims at no cost to the Debtors’ estates or the tort claimants’ trust (other than those costs required to litigate the underlying claims, including costs and expenses related to expert witnesses, estimation hearings, or trial); the Reorganized Debtors will be capitalized with not less than $25,000,000 of equity (previously $20,000,000); and the removal from the Stock Purchase Agreement of the concept of a Financing Contingency Termination Fee (i.e., $4,000,000 deposit is ‘hard’)….On the Effective Date, the Plan Sponsor, through one or more of its Affiliates, shall enter into the Transition Services Agreement with the Distribution Trust for a period of 180 days (or such lesser time as determined by the Distribution Trust). The compensation charged by the Plan Sponsor or its Affiliates under the Transition Services Agreement shall be $1,500,000 in the aggregate for such 180-day period.” A Plan confirmation hearing has been scheduled for July 16, 2018.

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The post Orianna Health Systems Amended Plan and Disclosure Statement appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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