Malvern-based LifeScan received approval from the U.S. Bankruptcy Court for its reorganization plan, writes John George for the Philadelphia Business Journal.
The court approval is a “significant milestone in our financial restructuring process,” said LifeScan CEO Valerie Asbury.
The blood glucose monitoring and digital health technology company announced that its plan will erase more than 75 percent of its debt by converting part of it into equity. LifeScan filed for Chapter 11 protection in July with $1.7 billion in liabilities and $786 million in assets.
It received approval for the restructuring plan from U.S. Bankruptcy Court Judge Alfredo R. Perez in Texas on Oct. 27.
Canyon Partners and Brigade Capital Management are leading a group of existing lenders who will hold a majority ownership stake in LifeScan once it emerges from bankruptcy, which is expected to happen before the end of the year.
The reorganization plan “positions LifeScan for long-term stability and growth,” said Aaron Rizkalla, managing director at Canyon Partners.
Founded in 1981, LifeScan operated under health care giant Johnson & Johnson until its $2.1 billion acquisition by Platinum Equity in 2018. Some of the company’s current debt is related to financial obligations tied to the transaction.
Read more about LifeScan and its reorganization plan after filing for bankruptcy in the Philadelphia Business Journal.
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