WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- HearUSA, Inc. announced today that on Friday, September 9, 2011, it completed the previously announced sale of substantially all of its assets to Siemens Hearing Instruments, Inc. through Siemens’ newly formed subsidiary, Audiology Distribution, LLC, in a sale conducted under the provisions of Section 363 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, had previously entered the order approving the sale on August 17, 2011.
The aggregate consideration received by the company was comprised of approximately $71 million in cash plus the assumption of certain liabilities. As previously reported, Siemens credit bid approximately $30.7 million of its secured loan to the company in connection with the 363 sale, reducing the liability of the company under the secured loan. The company anticipates that, after it files a Chapter 11 plan of liquidation with the Bankruptcy Court, the net proceeds of the sale will first be used to satisfy any priority administrative claims in full and allowed claims of the company’s secured and unsecured creditors in accordance with the priority of payment under the Bankruptcy Code. Although there can be no assurance of the amounts, if any, that will be available after satisfaction of administrative claims and creditors, the company expects there will be remaining net proceeds and that those will be distributed to the company’s equity holders pursuant to the plan of liquidation.
It is anticipated that the plan of liquidation will be filed with the Bankruptcy Court within 45 days, with the goal of seeking confirmation and an effective date of the plan prior to year end.
Also in connection with the consummation of the sale, the company has changed its name to HUSA Liquidating Corporation. As part of the assets sold, Audiology Distribution, LLC acquired all rights and title to the name “HearUSA” and will use such trade name going forward.
HUSA Liquidating CorporationMr. Joseph J. Luzinski, CRO, 305-374-2717