On August 23, 2022 (the “Petition Date”), Rochester, New York-based Carestream Health, Inc. along with several affiliates (the “Debtors”), which provide worldwide X-ray imaging systems for medical, non-destructive testing and precision contract coating services for industrial, medical and electronic applications, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10778).  The company reports $1 billion to $10 billion in both assets and liabilities.  The terms of the proposed restructuring are memorialized in a restructuring support agreement (the “RSA”) that serves as the foundation of the prepackaged Plan.  Under the RSA, the Debtors will eliminate approximately $470 million of prepetition funded debt and raise up to $75 million of new equity capital, while also leaving general unsecured claims unimpaired.  The Debtors state that as of the Petition Date, the Plan has been fully solicited and accepted by all creditor classes entitled to vote, including lenders collectively holding approximately 73% of the Debtors’ prepetition first lien revolver and term loan debt and approximately 98% of the Debtors’ prepetition second lien term loan debt.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

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