Thomas Health submits plan to exit Chapter 11

Release from Thomas Health:

CHARLESTON, W.Va. – Thomas Health, along with its subsidiaries, announces it has reached an agreement in principle with a new capital partner to fund a Chapter 11 plan of reorganization that would allow the health system to emerge from Chapter 11 bankruptcy just over six months after it sought protection to address its long-term indebtedness on January 10, 2020.

The plan, which was filed June 18, includes terms that provide for the discounted refunding of nearly $145 million in outstanding bond debt. Hamlin Capital Management, LLC, is serving as the representative of the investors in the new financing that will allow Thomas Health to exit bankruptcy if the plan is approved. Hamlin Capital is a New York-based, SEC registered investment advisory firm that oversees $4.5 billion of client assets and specializes in unrated tax exempt bonds and bankruptcy
restructurings.

“To be in the position to file a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the last
90 days, is a testament to the hard work of our employees,” says Dan Lauffer, President and CEO.

Lauffer continued, “It’s business as usual at Thomas Health, and our team is here, fully prepared to meet patient care needs. This milestone is just the beginning of what we plan to achieve moving forward today and tomorrow. We have ambitious plans for Thomas Health to support not only our
patients and community, but also our highly-skilled physicians and committed employees.”

The Chapter 11 plan, which was negotiated with various case parties, contemplates a significant reduction of the company’s long-term debt. If confirmed by the Bankruptcy Court, the plan will provide Thomas Health with the financial flexibility it needs to support further investment in its longterm growth, continue its mission to the community and strengthen its commitment to patients and employees.

To implement the restructuring, Thomas Health and its direct and indirect subsidiaries voluntarily fled petitions for relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of West Virginia. Subject to the approval of the Bankruptcy Court, Thomas anticipates
the plan will go effective within the next 60-75 days.

Throughout the court-supervised process, Thomas Health will continue providing quality care to the communities it serves without interruption and work with its business partners as usual.

Thomas Health is being represented in the Chapter 11 proceeding by Whiteford, Taylor and Preston, LLP as its legal advisor, SOLIC Capital Advisors as its investment banking and restructuring advisor, and
Force 10 Partners as its financial advisor.

Thomas Health operates Thomas Memorial Hospital, Saint Francis Hospital, Thomas Health Physician Partners and TMH Services. Thomas Health currently serves approximately 275,000 patients annually
and employs approximately 1,650 people.

For more information about Thomas Health, visit thomashealth.org.

Total
0
Shares
Related Posts