CLEARWATER, Fla., March 31 /PRNewswire/ -- CCS Medical, Inc. a leading provider of medical supplies, today announced that the Company has completed its financial restructuring and has emerged from protection under Chapter 11 of the United States Bankruptcy Code. Through its restructuring, CCS Medical reduced its outstanding debt to approximately $200 million from approximately $522 million. In addition, the Company's First Lien Lenders have exchanged their claims for 100% of the new equity in the Company and certain new debt. The majority of the Company's trade vendors will be paid in full.
As previously announced, CCS Medical's Plan of Reorganization (the "Plan") was confirmed by the United States Bankruptcy Court for the District of Delaware on March 11, 2010. In conjunction with the Plan, CCS Medical has also closed its $35 million exit financing facility. The Company expects to use the exit financing facility to fund its ongoing operations.
"This is a great day for CCS Medical and for all of our healthcare partners, patients, employees and business partners," said Stephen Saft, Chief Administrative Officer and Chief Financial Officer of CCS Medical. "Through our restructuring we have effectively addressed our financial challenges and laid the foundation for future success. We are moving forward as a new company, with a strengthened balance sheet that will allow us to compete successfully in our industry and invest in our growth and development plans."
As contemplated under the Company's Plan of Reorganization, John Miclot is no longer the Chief Executive Officer of CCS Medical. The Company has established an Office of the President that will continue to lead CCS Medical's operations going forward while providing time for the Board of Directors to conduct a broad and open search for a permanent CEO. The Office of the President is made up of the following members:
* Michael Iskra, Executive Vice President and General Manager, Diabetes;
* Michael O'Connor, Executive Vice President and General Manager, Chronic Care; and
* Stephen Saft, Chief Financial Officer and Chief Administrative Officer.
"We are proud of all that we have accomplished and would like to thank our customers, suppliers and business partners for their support throughout this process, as well as our employees for their hard work and dedication to our goal of a stronger future of the Company. We would also like to thank John for helping the Company to navigate through a successful restructuring and we wish him well in his future endeavors," concluded Mr. Saft.
About CCS Medical
Founded in 1994, CCS Medical has become a leading provider of medical supplies. CCS Medical assists patients that need diabetes test strips, insulin pumps, urological supplies, ostomy supplies, advanced wound care dressings and prescription drugs. CCS Medical specializes in providing a convenient way for patients to receive supplies for their chronic illnesses in a manner that saves them time and money.
As a leader in the medical supply community, CCS Medical has a commitment to the mission statement of being the leading provider of products and services to the home chronic care marketplace.
The Company maintains a solid reputation among patients and healthcare professionals, and has developed strong relationships and select co-marketing agreements with a number of the world's leading medical products manufacturers. For more information on CCS Medical, please visit www.ccsmed.com.
This press release contains certain forward looking statements about our financial condition, operations, business strategies, objectives, future business and financing requirements. It also contains other forward looking statements about our expectations, beliefs, future plans, anticipated developments and other matters that are not historical facts concerning our business, operations and financial performance and condition. These statements are based upon management's current expectations and beliefs and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward looking statements. These risks and uncertainties include market conditions and other factors beyond the Company's control.
Andy Brimmer / Meaghan Repko
Joele Frank, Wilkinson Brimmer Katcher