Lenders come up with Plan B for GenesisCare US sale process
afr.comFailed cancer care provider GenesisCare, which entered Chapter 11 in June, says its lender group has extended up to $US68 million ($104 million) in new financing to help keep the business running as it aims to emerge from bankruptcy protection in January.
The Queensland-founded company operates cancer care clinics, including specialist radiation therapy, in Australia, the US, Spain and the UK.
Oaktree Capital co-founder Howard Marks in Sydney. Oaktree has stumped up extra capital for GenesisCare. Louise Kennerley
GenesisCare has been running a sales process to sell off parts of its US business, which it acquired in an ill-fated $1.5 billion deal in 2019 when buying 21st Century Oncology in Florida.
While some parts of the business had recently been sold, the company now says improved trading conditions and the additional funding mean it may keep some of the assets if pricing expectations are not met.
GenesisCare has obtained commitments for new financing facilities, including $US20 million in debtor-in-possession (DIP) financing and up to $US48 million in new money exit financing. That will be financed by existing lenders, which include Avenue Capital, Oaktree Capital, Bain Capital and others, on a pro-rata basis.
Some debt has traded hands, with speculation local investor Revolution Asset Management has sold its debt holding.
GenesisCare has around 300 radiation therapy centres and integrated medical offices offering urology and pulmonology care in the US.
The cancer services provider, founded by Dan Collins in Brisbane in 2005, grew to 440 centres across the UK, Spain, United States and Australia, mostly specialising in radiation therapy.
It was pushed into Chapter 11 bankruptcy in June, with its shareholders – China
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