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FORT MYERS — A federal bankruptcy court approved integrated cancer treatment firm 21st Century Oncology's reorganization plan to come out of Chapter 11 bankruptcy.
The plan, approved by United States Bankruptcy Court for the Southern District of New York, is expected to reduce 21st Century's long-term debt by more than $500 million, according to a statement.
The company expects to complete the financial restructuring process and emerge from chapter 11 within the next couple of weeks, and the majority owners of the reorganized company will provide fresh capital, the release adds. The ownership group includes funds and accounts managed by Beach Point Capital Management LP; Governors Lane LP; J.P. Morgan Investment Management; Oaktree Capital Management; Roystone Capital Management LP and HPS Investment Partners LLC, the release states.
“The court's approval of the plan is the culmination of months of hard work and constructive negotiations. 21st Century Oncology is well poised to achieve its objective of being the preeminent integrated cancer care provider in the country,” says Jeff Goldberg, incoming board chairman of the reorganized 21st Century. “We are pleased with all the cooperation we received in reaching this important milestone, and soon 21st Century Oncology will emerge from Chapter 11 as a more financially stable company with a stronger balance sheet. We will be poised for long-term growth and have the financial flexibility to continue to be at the forefront of cancer care."
Thomas Gordon, board member of the reorganized company and longtime 21st Century consultant, adds that the confirmation of the reorganization plan “provides us with an opportunity to put the past behind us and focus on our strategic vision for the future."
When the company filed for bankruptcy last May, officials attributed the cancer treatment provider's difficulties to “industry dynamics, particularly the challenging reimbursement environment,” that impacted “our ability to maximize revenue,” according to a separate statement.
21st Century Oncology Holdings offers a comprehensive range of cancer treatment services. It operates 179 treatment centers, including 143 centers located in 17 U.S. states and 36 centers located in seven countries in Latin America. During the Chapter 11 process the company has operated its business in without disruption.
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