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FORT MYERS — 21st Century Oncology Holdings Inc., one of the largest global providers of integrated cancer care, has filed for Chapter 11 bankruptcy.
The move is part of a debt restructuring to reduce the company's long-term net debt by more than $500 million, including a new cash equity infusion of $75 million from a group of investors. The firm, in a statement, says the debt restructuring will improve its financial flexibility and enhance its work with its physician and hospital partners.
Paul Rundell, 21st Century Oncology interim CEO, says the company is “fundamentally strong” and a profitable business, but adds: “We simply have too much debt given the size of the business.”
He attributes the cancer treatment provider's difficulties to “industry dynamics, particularly the challenging reimbursement environment,” that impacted “our ability to maximize revenue.”
21st Century Oncology expects the bankruptcy to form the basis of a consensual reorganization plan that Rundell says gives flexibility to “make investments that will allow us to remain at the forefront of patient care.”
21st Century Oncology operates 179 treatment centers, including 143 centers in 17 states and 36 centers located in seven countries in Latin America.
During the Chapter 11 process the company expects to operate its business in the ordinary course, without disruption, and patients “can be assured that there will be no change in the way they are treated,” the release states. Treatment facilities remain open and are operating on normal schedules, and patients' appointments, treatment schedules and physician partners remain the same.
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