Bankruptcy Court Approves TLC Vision Corp. Plan Sponsor Pact With Charlesbank Capital Partners, H.I.G. Capital

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ST. LOUIS—TLCVision Corporation announced that on Feb. 12 the U.S. Bankruptcy Court for the District of Delaware approved an amended plan sponsor agreement backed by affiliates of Charlesbank Capital Partners and H.I.G. Capital, LLC regarding a new plan of reorganization that would result in the payment in full of all outstanding amounts owing to the company’s senior secured lenders under its credit facility.

As previously reported in VM, in connection with the amended plan, the Bankruptcy Court also approved $25 million in debtor-in-possession financing facility to be provided by Charlesbank and H.I.G. that will be used to repay the company’s current debtor-in-possession financing.

In addition to the previously announced terms of the plan, including the acquisition by Charlesbank of substantially all the assets of the company—including 100 percent of the equity of TLC Vision (USA) Corporation and the company’s six refractive centers in Canada as well as payments to employees and critical vendors in the ordinary course of business—the amended plan with Charlesbank and H.I.G. also provides for consideration in the amount of up to $9.0 million in cash and a new promissory note of up to $3.0 million to be paid to the company’s unsecured creditors. Subsequent to the previously announced Charlesbank transaction, H.I.G. joined as a co-investor with Charlesbank in the acquisition of the company’s assets under the plan.

There is no assurance of any distribution of funds to the shareholders of the company under the plan and completion of the plan is subject to customary closing conditions, including final confirmation by the Bankruptcy Court and the Canadian Court and regulatory approvals, the company said. The official committee of unsecured creditors of the company has also expressed its support of the plan with Charlesbank and H.I.G, the latest statement added.

TLC Vision filed for Chapter 11 bankruptcy protection on Dec. 21. The company was also recently delisted by the Nasdaq stock exchange for failing to meet the exchange’s required minimum stock price and valuation.

In addition, the company has established a restructuring hotline: (877) 879-5075 for U.S. and Canadian callers; (503) 597-7713 for international callers.