GenesisCare’s original lenders have sold about $US400 million ($600 million) of their holdings in the secondary markets, for as little as 15¢ in the dollar, Street Talk reported in late May. Its lending group consisted of Blackstone, Barclays, Bain Capital, The Carlyle Group and Investcorp.
GenesisCare has secured commitments, subject to US Court approval, for a debtor-in-possession financing facility providing $US200 million in new money from existing lenders to support its business operations.
This facility will allow GenesisCare to continue meeting its obligations across the entire enterprise―including to patients, doctors, employees, hospital and health service partners and suppliers―while financially restructuring the business.
All doctors and employees will continue to receive their pay and benefits, and suppliers of goods and services outside of the US will be paid in the ordinary course. US vendor payments will be subject to the Chapter 11 process and Court approval.
GenesisCare has more than $2 billion in debt, a lot of which was taken on to buy US based 21st Century Oncology and expand aggressively in US in 2019.
David Young, the newly appointed GenesisCare chief executive, said GenesisCare plays a critical role for the patients and communities, but the past three years through the pandemic created significant operational and financial challenges.
“We are grateful for the demonstration of confidence in our doctors and our underlying business, represented by the commitment of substantial new financing from the lender group,” he said. “As part of the restructuring process, we are refocusing our business on the national markets we serve, enabling investment in key growth areas and equipment, and simplifying the organisation to deliver better life outcomes for patients, while improving our operational and financial performance.”
One of the world’s largest integrated oncology networks, GenesisCare includes 300 plus locations in the US, the UK, Australia, and Spain.
More to come
