LifeScan announced that its Chapter 11 bankruptcy reorganization plan received U.S. Bankruptcy Court approval.
The U.S. Bankruptcy Court for the Southern District of Texas approved the company’s Chapter 11 plan. With the approval, LifeScan said it’s positioned to emerge from its financial restructuring process by the end of the year.
Malvern, Pennsylvania-based LifeScan said in July that it entered into a restructuring support agreement and, to implement it, filed for Chapter 11. At the time, it said it expected to emerge from the process under the majority ownership of a group of existing lenders. It plans for the restructuring to “transform its balance sheet” while positioning it for a stronger, more profitable future. The company expects to reduce more than 75% of its debt to accelerate strategic investments that support its future.
LifeScan said that, upon emergence, its existing lenders, including Canyon Partners and Brigade Capital Management, will hold majority ownership. It said those parties strongly believe in its growth prospects within the glucose management industry.
The company develops the OneTouch Bluetooth-connected blood glucose meter and mobile diabetes app. It aims to provide simplicity, accuracy and trust in diabetes management.
“Today’s approval marks a significant milestone in our financial restructuring process,” said Valerie Asbury, CEO of LifeScan. “I am deeply grateful for the support of our financial partners and the unwavering commitment of our employees, which have enabled us to stay focused on delivering on our mission for more than 20 million people in over 50 countries. This balance sheet restructuring provides a stronger foundation for LifeScan to support our base business, advance new growth strategies, and commence our journey to become one of the most comprehensive players in the glucose management space.”
