Insight Health Services, a provider of fixed-site and mobile diagnostic imaging services, emerged from Chapter 11 restructuring this week.
The California-based company, which serves hospitals, physicians, payers and others in more than 30 states, had filed for Chapter 11 bankruptcy protection in December in order to deleverage its balance sheets and eliminate debt.
At the time the company announced it was restructuring, officials said they had reached agreement in principle with the holders of a majority of its senior secured floating rate notes and had received a post-petition financing package of $15 million from Bank of America. Normal operations continued through the restructuring period.
Through the restructuring, the company eliminating nearly $300 million of long-term debt and secured a new revolving credit facility of up to $17.5 million with Healthcare Finance Group. This credit will be used for working capital for ongoing operations. The company’s new majority equity owners are affiliates of Black Diamond Capital Management, an alternative asset management firm with offices in Greenwich, Conn., and Lake Forest, Ill.
“This is an exciting day for Insight, as we emerge from our restructuring with essentially no debt, the strongest balance sheet in our business and a great opportunity to get back to growing our business,” said Kip Hallman, Insight’s president and chief executive officer, in a statement. “We set out to complete our restructuring without disruption to our patients, employees and the hospitals and physicians we serve, and we were able to achieve this goal through the dedicated hard work of all the outstanding members of our team."