By Dow Jones Business News, October 01, 2013, 02:01:00 PM EDT
By Stephanie Gleason
Creditors of OnCure Holdings Inc. have voted to accept the radiation center operator's bankruptcy-exit plan, which
pays bondholders with proceeds from a $125 million sale of the company's assets.
The vote allows OnCure to tick off another item on its restructuring checklist. On Thursday, the company will ask the
U.S. Bankruptcy Court in Wilmington, Del., for its approval of this plan, which will essentially conclude OnCure's
Chapter 11 case.
The holders of more than $205.5 million in bonds voted overwhelmingly in support of the plan, according to a
tabulation filed Monday. The holder of only one claim, valued at $9,000, voted against the plan. The Bankruptcy Code
requires that at least half by number and two-thirds by bond amount of the creditors back a bankruptcy-exit plan for the
court to confirm it.
OnCure's bankruptcy-exit plan pays its lender, owed $15 million, in full. Unsecured creditors and current equity
holders are being wiped out. As a result of this payment structure, these three classes weren't allowed to vote on the
plan, as the lender was "deemed to accept" the plan and the other two were "deemed to reject" it.
The largest unsecured creditor in the case is also OnCure's owner, private-equity firm Genstar Capital LLC. The firm
acquired OnCure in 2006, and its unsecured claim is for $2.1 million in management fees, according to court papers.
Bondholders are sharing the $42.5 million in cash and $82.5 million in new notes generated from the sale. Some of
OnCure's largest bondholders include Wells Fargo Bank N.A., which holds $31.3 million in bonds; Bank of New York Mellon
Corp. ( BK ), which holds $28.4 million; and Goldman Sachs & Co., which holds $26.4 million.
OnCure competitor Radiation Therapy Services Holdings Inc.'s is purchasing OnCure's business, which provides
management services and medical equipment to 34 radiation oncology treatment centers in Florida, California and Indiana.
The $125 million offer was set to lead bidding during an auction in August, but no other qualified offers were
received, and Radiation Therapy was named the successful bidder.
OnCure, based in Englewood, Colo., filed for Chapter 11 protection on June 14. Reduced reimbursement from government
payers Medicare and Medicaid had resulted in a "material adverse impact on the Debtors' net revenue and results of
operations," the company said.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to
Write to Stephanie Gleason at email@example.com
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