{"id":34685,"date":"2009-10-29T07:08:51","date_gmt":"2009-10-29T11:08:51","guid":{"rendered":"http:\/\/www.pehub.com\/?p=54063"},"modified":"2009-10-29T07:08:51","modified_gmt":"2009-10-29T11:08:51","slug":"ccs-medical-creditors-eye-talks-after-plan-rejected","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/34685","title":{"rendered":"CCS Medical Creditors Eye Talks, After Plan Rejected"},"content":{"rendered":"

WILMINGTON, Del. (Reuters) – Creditors to CCS Medical are hoping to reach agreement to bring the medical equipment supplier out of bankruptcy after a court rejected a plan backed by Highland Capital Management, a source said on Wednesday.<\/p>\n

The plan to transfer the company’s ownership to creditors led by hedge funds of Highland Capital was rejected by Delaware Judge Christopher Sontchi last week for undervaluing the company.<\/p>\n

The distributor of diabetes test strips and urological supplies had proposed transferring company ownership and $200 million in new debt to its first-lien lenders who were owed $350.3 million.<\/p>\n

Second-lien secured lenders, who have claims of $112.8 million, opposed the plan which would have given them some cash or warrants for stock.<\/p>\n

“The second-lien group hopes to work with the first-lien to effectively resolve this restructuring,” said the source close to the situation who declined to speak on the record because he was not authorized to do so.<\/p>\n

Highland Capital, a hedge fund, is the largest holder of the company’s first- and second-lien debt, according to court documents.<\/p>\n

Parties to the second-lien debt include Wachovia Bank as administrative agent, Bank of America (BAC.N) as syndication agent and JPMorgan Chase Bank (JPM.N) as documentation agent.<\/p>\n

“The company is exploring all of its options,” said company spokesman Andy Brimmer.<\/p>\n

At issue with the original plan was an analysis by financial advisors Goldman Sachs & Co, which valued the company at up to $286 million.<\/p>\n

In rejecting the plan of reorganization, Sontchi questioned the methods used by Goldman.<\/p>\n

“I really give in effect zero credence to the Goldman report,” Sontchi told a hearing last week. (Reporting by Thomas Hals; editing by Carol Bishopric)<\/p>\n

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WILMINGTON, Del. (Reuters) – Creditors to CCS Medical are hoping to reach agreement to bring the medical equipment supplier out of bankruptcy after a court rejected a plan backed by Highland Capital Management, a source said on Wednesday. The plan to transfer the company’s ownership to creditors led by hedge funds of Highland Capital was […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-34685","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/34685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=34685"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/34685\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=34685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=34685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=34685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}