InSight Health Services Holding Corp. can move forward with plans to reorganize itself and its wholly owned subsidiary, InSight Health Services Corp., according to a decision issued Tuesday by the U.S. Bankruptcy Court in Delaware.
The diagnostic-imaging company, located in Lake Forest, Calif., filed for Chapter 11 bankruptcy protection in June as a part of a plan to reorganize and reduce growing debt. The plan, among other measures, provided protection to investors holding $300 million in senior secured notes due for payment in 2011. It also allowed the company to secure a $30 million revolving credit line from Bank of America.
The restructuring effort will eliminate $194.5 million of debt for InSight, according to company President and Chief Executive Officer Bret Jorgensen. We expected a quick confirmation of the plan, and hence, we accomplished our goal, which preserved trade creditor claims and also protected our customers and employees, he said. Of equal importance is that our normal business operations, as well as the patients, physicians and hospitals we serve, have been uninterrupted by this process. -- by Shawn Rhea