Patriot National, Inc. (“PNI”), a provider of technology and outsourcing solutions to the insurance industry, announced its emergence from Chapter 11 as anticipated in its Plan of Reorganization confirmed on May 4, 2018. According to documents filed with the Court, “Pursuant to the Plan, all of the issued and outstanding equity interests in PNI and each of its direct and indirect subsidiaries (the ‘Subsidiary Debtors’) will be extinguished, and First Lien Lenders (or their designees) will receive 100% of newly issued equity interests in Reorganized PNI and each of the Reorganized Subsidiary Debtors on account of a portion of their claims arising under their applicable financing agreements as further described below…. On the Effective Date, Reorganized Debtors will enter into a new credit facility (the ‘Exit Facility’) with commitments sufficient (after giving effect to Available Cash) to (a) repay in full all amounts outstanding under the DIP Facility, (b) make the cash distributions contemplated by the Plan, (c) provide working capital for the ongoing business operations of the Reorganized.” In a press release announcing the emergence, PNI noted, “Ownership of the Company has transitioned from its public shareholders to certain funds and accounts managed by each of Cerberus Business Finance, LLC and its affiliates and TCW Asset Management Company LLC. John Rearer will continue as CEO of the Company, and it will remain headquartered in Fort Lauderdale, FL.” Patriot National (a/k/a Old Guard Risk Services) and 18 affiliated Debtors filed for Chapter 11 protection in the District of Delaware on January 30, 2018 listing debts of over $242 million.
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