June 18, 2020 – Thomas Health, a Force 10 Partners Chapter 11 Debtor financial advisory client, has reached an agreement in principle with a new capital partner to fund a Chapter 11 Plan of Reorganization (the “Plan”). Filed earlier today, the Plan includes terms that provide for the discounted refunding of nearly $145 million in outstanding bond debt. Hamlin Capital Management, LLC, is serving as the representative of the investors in the new financing that will allow Thomas Health to exit bankruptcy, if the Plan is approved. Hamlin Capital is a New York-based, SEC-registered investment advisory firm that oversees $4.5 billion of client assets and specializes in unrated tax-exempt bonds and bankruptcy restructurings.
Negotiated with various case parties, the Plan contemplates a significant reduction of the company’s long-term debt. If confirmed by the Bankruptcy Court, the Plan will provide Thomas Health with the financial flexibility it needs to support further investment in its long-term growth and preserve more than 1,650 jobs. To implement the restructuring, Thomas Health and its direct and indirect subsidiaries voluntarily filed petitions for relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of West Virginia. Subject to the Bankruptcy Court’s approval, Thomas anticipates the Plan will go effective within the next 60-75 days.
Thomas Health will continue providing quality care to the communities it serves without interruption and work with its business partners as usual.
Force Ten Partners, LLC, is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, valuation, forensic accounting, and complex litigation support. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals by providing turnaround-management services (CRO), financial advisory services, expert witness support, and investment banking and M&A advisory services.