Physiotherapy Associates Commences Unanimously Supported Restructuring To Strengthen Financial Foundation
Financial Restructuring Unanimously Supported by Key Stakeholders and Expected to Have No Impact on Operations, Quality of Service or Patient Care
EXTON, Pa., Nov. 12, 2013 /PRNewswire/ — Physiotherapy Associates, one of the nation’s foremost providers of outpatient rehabilitation services, announced today that it will pursue a pre-packaged, court-supervised financial restructuring to strengthen its balance sheet. The financial restructuring is expected to have no impact on the Company’s operations or its ability to continue providing high-quality service and patient care and was unanimously supported by its senior secured lenders and bondholders that submitted votes on the Company’s prepackaged plan.
To facilitate this financial restructuring, Physiotherapy Associates elected to file voluntary petitions with the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of the United States Bankruptcy Code. The Company expects to use the restructuring process to reduce its outstanding funded debt and enhance its financial flexibility so that it may continue to invest in its business and take advantage of key growth opportunities.
Martin McGahan, Chief Executive Officer of Physiotherapy Associates, said, “This is an important step forward in our efforts to align our capital structure with the strength of our operations and current financial performance. The Company is profitable and has positive cash flow – this process relates solely to the issue of restructuring the balance sheet. Providing high-quality treatment remains our top priority and this process will not compromise the safety and well-being of our patients. We will remain focused on executing key initiatives, including providing the right products, tools and solutions to support our employees, clinicians, referral sources and joint venture partners. We expect operations to continue in the ordinary course and are committed to maintaining our relationships with vendors. We look forward to using the restructuring process to better position the Company for long-term success and profitability.”
In advance of the filing, Physiotherapy Associates has received approval of the financial restructuring plan from 100% of its senior secured lenders and over 99.7% of its bondholders.
Physiotherapy Associates has filed a series of customary motions with the Court to ensure the continuation of day-to-day operations. These motions, which the Company expects to be granted, include requests to continue providing employee wages and benefits and to pay suppliers in full under normal terms for goods and services.
Physiotherapy Associates is one of the nation’s foremost providers of outpatient rehabilitation services. Physiotherapy Associates employs an industry-leading team of physical and occupational therapists and healthcare practitioners who are dedicated to high-quality patient care. The company provides physical therapy, industrial rehabilitation, sports medicine and orthotics and prosthetics services to millions of patients each year across the United States. Physiotherapy Associates is national in scope, local in care. For more information, visit www.physiocorp.com.
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SOURCE Physiotherapy Associates