Quorum Health Term Lenders’ Chapter 11 $1.3B Restructuring

Milbank LLP advised the Ad Hoc Group of Term Lenders in the chapter 11 cases of Quorum Health Corporation and its affiliated debtor.

Quorum Health Term Lenders completed its $1.3B restructuring support agreement with a majority of its first lien lenders (including the Ad Hoc Group of Term Lenders) and noteholders on a pre-packaged chapter 11 plan of reorganization (the “Plan”), Quorum filed voluntary petitions for chapter 11 relief in the US Bankruptcy Court for the District of Delaware.

Quorum obtained confirmation of its chapter 11 plan on June 29, 2020. Under the confirmed Plan, Quorum cut its roughly $1.3 billion in debt by about $500 million, including a $50 million paydown for its term lenders and the equitization of Quorum’s 11.625% Senior Notes due 2023. Quorum also received a $200 million equity commitment from certain holders of the Senior Notes that was funded upon completion of the cases and used to pay various costs and reduce debt. Further, Quorum emerged from chapter 11 with over $700 million in take-back exit facility loans funded in part by the Ad Hoc Group of Term Lenders.

The Milbank team was led by Dennis Dunne (Picture) and Tyson Lomazow and included Albert Pisa, Alexander Lees, Maya Grant and Kim Goldberg, Alex Miller.

Involved fees earner: Dennis Dunne – Milbank; Kim Goldberg – Milbank; Maya Grant – Milbank; Alexander Lees – Milbank; Tyson Lomazow – Milbank; Alex Miller – Milbank; Albert Pisa – Milbank;

Law Firms: Milbank;

Clients: Quorum Health Corporation – Ad Hoc Group of Term Lenders;

Author: Ambrogio Visconti