Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Commercial & Professional Services

Jobson Medical Information Holdings Chapter 11 Petition, Plan Filed

Privately-held Jobson Medical Information Holdings and 16 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 12-10434. The Company, which is a healthcare information and marketing services provider, is represented by Sharon L. Levine and Paul Kizel of Lowenstein Sandler. Concurrent with the petition, the Company also filed a Joint Prepackaged Plan of Reorganization and related Disclosure Statement, dated January 10, 2012. According to the Disclosure Statement, “The Prepetition Lender Claims shall be deemed Allowed for all purposes of the Plan and the Chapter 11 Cases. In full satisfaction, settlement, release, and discharge of and in exchange for each Prepetition Lender Claim each Holder of a Prepetition Lender Claim shall receive: New Term Loans in a principal amount equal to its Pro Rata share of $117.36 million. The New Term Loans will be governed by the Exit Facility Credit Agreement. Among other things, the New Term Loans will (A) be issued by Reorganized JMIH and the other Reorganized Debtors in an aggregate principal amount of $117.36 million, (B) be guaranteed by each of the Reorganized Debtors, (C) be secured by a Lien on substantially all of the assets of the Reorganized Debtors (to the extent and on the priority basis set forth in the Exit Facility Credit Agreement), (D) have a final maturity date of December 31, 2014 (but will require scheduled amortization payments and mandatory prepayment from the sale of certain assets, certain debt and equity issuances and excess cash flows and upon the occurrence of certain specified events as provided in the Exit Facility Credit Agreement) and (E) bear interest at fluctuating rates based on three-month LIBOR (subject to a LIBOR floor of one and one-half percent (1.5%) plus nine percent (9.0%) or a Base Rate (as defined in the Exit Facility Credit Agreement) (subject to a Base Rate floor of two and one-half percent (2.5%)) plus eight percent (8%) plus, in the case of a default, additional default interest as provided in the Exit Facility Credit Agreement. The interest on the New Term Loans will be payable pursuant to section 3.2 of the Exit Facility Credit Agreement Section 3.2 of the Plan is subject to and qualified in its entirety by reference to the Exit Financing Documents and the other Plan Documents; and (b) Its Pro Rata share of the Class 3 Membership Units, which shall be delivered to Holders of Prepetition Lender Claims on the Effective Date; provided that, as a condition to receipt of its Membership Units, each Holder of a Prepetition Lender Claim (which are for the avoidance of doubt deemed Allowed under the Plan) will be required to execute a counterpart of the Reorganized JMIH LLC Agreement.” Jobson Medical Information indicated total assets of $100 to 500 million on its Chapter 11 petition.

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