Invacare Files For Chapter 11, But Expects To Continue Focusing On Home-Care Products
$IVC
Industrial Specialties
Health Care
- Invacare Corporation (NYSE:IVC) entered into a “Restructuring Support Agreement” (RSA) with substantially all its debt holders.
- It includes its term loan lender, all holders of convertible senior secured notes, and holders of most convertible senior unsecured notes.
- The RSA transactions include a reduction of Invacare’s funded debt by approximately $240 million.
- It also includes a backstop for a rights offering to holders of claims, providing Invacare with $60 million in equity capital, allowing the company to repay certain debt obligations and facilitate its transformation plan.
- Additionally, to effectuate these transactions, Invacare and two U.S.-based subsidiaries commenced voluntary Chapter 11 cases.
- The company said its other businesses “remain strong” and excluded from these filings.
- Invacare believes the filings won’t impact its ability to manufacture and deliver products to customers globally.
- Upon emergence from Chapter 11, Invacare expects to be financially positioned to seize opportunities and capitalize on a significant upward shift in market demand.
- The company intends to deliver improved profitability and free cash flow in 2023 and beyond.
- Invacare reported interim Q4 revenues of $181 million, +6% Y/Y, with growth in all regions and all major product categories.
- Gross margins improved by 310 basis points to 26.6%.
- Price Action: IVC shares are down 19.7% at $0.53 on the last check Wednesday.