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Hooper Holmes, Inc. – Files Chapter 11 Petition, Details Purchase Agreement with Summit Health and DIP Financing

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August 28, 2018 – Hooper Holmes, Inc., d/b/a Provant Health, and six affiliated debtors (collectively, “the Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 18-23302. The Company, which provides health and wellbeing services to private and government customers via a network of health professionals throughout the country, is represented by Richard J. Bernard of Foley & Lardner. Further board authorized engagements include Halperin Battaglia Benzija, as conflicts counsel, Spencer Fane LLP as securities counsel, Phoenix Management Services as financial adviser and Raymond James & Associates as investment banker.

In connection with the filing of its Chapter 11 petition, the Debtors filed a motion requesting interim and final Court approval of (i) a proposed super-priority, secured, debtor-in-possession (“DIP”) term credit facility in an aggregate principal amount of $1.6 million by and among the Debtors and SWK Funding LLC and (ii) a proposed super-priority, secured, DIP revolving credit facility which would provide a line of credit of up to $12 million by and among the Debtors and CNH Finance Fund I, L.P. The Debtors have additionally announced the execution of an asset purchase agreement (the “Purchase Agreement”) with Summit Health, Inc. (“the Buyer”), a subsidiary of Quest Diagnostics Incorporated, a leading provider of diagnostic testing, information, and services. Pursuant to the Purchase Agreement, the Company and its subsidiaries have agreed to sell substantially all of their assets to the Buyer who will serve as a “stalking horse bidder” in a Section 363 asset sale process. Under the terms of the Purchase Agreement, the Buyer has agreed to pay $27 million for the Debtors assets provided, however, that the purchase price will be reduced by $150,000 for each day that the closing is delayed past October 10, 2018.

In a press release announcing the filing, Jim Fleet, chief restructuring officer/senior executive in charge of Provant Health, commented “After the merger of Hooper Holmes and Provant in 2017, the combined company was saddled with a significant working capital shortfall, an over-leveraged balance sheet and experienced significant losses in 2017. Through this acquisition by Quest, the Company is now positioned for success.” The Company’s petition notes between 200 and 1,000 creditors; estimated assets between $10 million and $50 million; and estimated liabilities between $10 million and $50 million.

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The post Hooper Holmes, Inc. – Files Chapter 11 Petition, Details Purchase Agreement with Summit Health and DIP Financing appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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