SAN DIEGO (Nov. 10, 2015) Millennium Health today announced that it filed voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware to implement its previously announced financial restructuring plan.
The agreement which led to the terms of the financial restructuring was reached with near unanimous support of debt holders and the Company’s current equity holders. It contemplates, among other things, a reduction in the Company’s debt by more than $1.15 billion and a contribution of $325 million by current equity holders. As a result of the restructuring, the lenders will become the new owners of Millennium. No creditors other than the Company’s lenders will be impacted by the restructuring plan and there should be no disruption to Millennium’s business or employees. The plan of reorganization, through which the restructuring transaction will be implemented, is expected to be confirmed by year end.
“We are pleased to have achieved such strong support for a consensual restructuring that dramatically improves our balance sheet,” said Chief Executive Officer Brock Hardaway. “This is excellent news for our customers, suppliers, and employees because it paves the way for a promising future for Millennium Health.”
As only existing lenders and current equity holders are anticipated to be affected by the terms of the restructuring, all other creditors including vendors, suppliers, trade partners and other counterparties are expected to receive all payments due to them in the ordinary course of business. In response to the overwhelming support received for the plan, the Company is seeking confirmation of its plan of reorganization on an expedited basis and anticipates emerging from Chapter 11 as soon as possible after December 15, 2015.
About Millennium Health
Millennium Health is a leading health solutions company that aims to get more from medicines by delivering accurate, timely, clinically actionable information to inform treatment decisions. The company believes that everyone has the right to the safest and most effective treatments, and aims to deliver on that idea by providing clinicians and payers with personalized medication intelligence through our comprehensive suite of services including Millennium PGTSM, Millennium UDTSM and Millennium OFTSM, which can be used to better tailor patient care. More information can be found at www.millenniumhealth.com.