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Rotech Healthcare Inc. (ROHI) Successfully Completes Financial Restructuring and Emerges From Chapter 11


9/30/2013 7:23:36 AM

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Rotech Successfully Completes Financial Restructuring and Emerges From Chapter 11

ORLANDO, Fla.--(BUSINESS WIRE)-- Rotech Healthcare Inc. announced today that it has successfully completed its financial restructuring and has emerged from Chapter 11 protection.

As a result of this five month restructuring process, Rotech substantially deleveraged its balance sheet, positioning Rotech to be a financially stronger enterprise. Rotech successfully reduced its outstanding debt by more than $300 million and reduced its annual cash interest expense from $60 million to less than $20 million.

“Today marks a new beginning for Rotech,” said Steven P. Alsene, Rotech’s President and Chief Executive Officer. “With the financial restructuring behind us, we have the increased financial flexibility, which we believe will allow us to compete aggressively in today’s home medical equipment market. Our brief restructuring would not have been possible without the support of our lenders, creditors, suppliers, customers and especially our employees.”

Proskauer Rose, LLP serves as the Company’s legal advisor, Barclays as financial advisor and AlixPartners as restructuring advisor.

Wachtell Lipton Rosen & Katz serves as legal advisor to each of the Consenting Noteholders holding Second Lien Secured Notes.

About Rotech Healthcare Inc.

Rotech Healthcare Inc. is one of the largest providers of home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The Company provides home medical equipment and related products and services principally to older patients with breathing disorders, such as chronic obstructive pulmonary diseases (COPD), which include chronic bronchitis, emphysema, obstructive sleep apnea and other cardiopulmonary disorders. The Company provides equipment and services in 49 states through approximately 420 operating locations located primarily in non-urban markets.

Forward-Looking Statement

Information set forth herein (including information included or incorporated by reference herein) contains “forward-looking statements” (as defined in Section 21E of the Exchange Act), which reflect the Company’s expectations regarding future events. The forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements include, but are not limited to that the Company will have sufficient cash on hand to pay its operating expenses; the Company’s ability to continue to comply with other covenants under its notes or credit facility; potential decreases in Medicare Part B reimbursement rates; legislative or regulatory changes to Medicare or related programs; health care reform, including recently enacted legislation; adjustments in reimbursement rates set by the Centers for Medicare & Medicaid Services; the effects of the competitive bidding process under Medicare; the accreditation of the Company’s operating locations and their compliance with government standards for coverage and payment; the Company’s ability to improve its operating structure, financial results and profitability following emergence from chapter 11; the potential adverse effects of the chapter 11 proceedings on the Company’s liquidity, results of operations, brand or business prospects; the Company’s ability to generate or raise cash and maintain a cash balance sufficient to fund continued investments, capital needs and service its debt; the Company’s ability to maintain contracts that are critical to its operation; the Company’s ability to obtain and maintain normal terms with customers, suppliers and service providers; and the Company’s ability to retain key executives, managers and employees. Additional factors that may affect future results are contained in the Company’s filings with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website at www.sec.gov. The Company disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise.

Contact:

Sitrick And Company

Anita-Marie Laurie

(310) 788-2850

AnitaMarie@sitrick.com

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