We advised the prepetition term loan agent and escrow agent on the transaction

Davis Polk is advising Highbridge Capital Management, LLC and its affiliates, in connection with the chapter 11 restructuring of Invacare Corporation (together with certain of its affiliates, “Invacare”). Highbridge is the sole lender under Invacare’s $104.5 million secured term loan credit facility, the sole holder of $41.5 million of 5.68% convertible senior secured notes due 2026 issued by Invacare, and the sole lender under Invacare’s $70 million debtor-in-possession term loan facility.

On April 28, 2023, the United States Bankruptcy Court for the Southern District of Texas confirmed a chapter 11 plan of reorganization for Invacare. The plan reflects the global settlement with the official committee of unsecured creditors reached in the chapter 11 cases, and the comprehensive restructuring contemplated in Invacare’s restructuring support agreement entered into with Highbridge, certain holders of 5.00% convertible senior unsecured notes due 2024 and 4.25% convertible senior unsecured notes due 2026, and certain lenders under Invacare’s senior secured asset-based revolving credit facility.

The plan was supported by all major stakeholders in the chapter 11 cases and provides that (i) holders of prepetition term loans and prepetition secured notes will receive take-back secured term loans or take-back secured convertible notes, as applicable, (ii) holders of prepetition unsecured notes will receive common equity and rights to participate in a $75 million new money rights offering for preferred equity to be issued by the reorganized debtors, and (iii) holders of general unsecured claims will receive, at their election, common equity or a cash settlement.

Headquartered in Elyria, Ohio, Invacare is a global leader in the manufacture and distribution of innovative home and long-term-care medical products that promote recovery and active lifestyles. Invacare employs approximately 3,400 associates and markets its products in more than 100 countries around the world.

The Davis Polk restructuring team includes partner Damian S. Schaible, counsel Steven Z. Szanzer and associates Jonah A. Peppiatt and Eric Hwang. The finance team includes partner Kenneth J. Steinberg and associates Sarah Hylton and Theodore N. Batis. The equity derivatives team includes partner Mark M. Mendez, counsel Faisal Baloch and associate Amy Cheng. Partner William L. Taylor and associate Jerry O’Young are providing M&A advice. Partner Ethan R. Goldman is providing tax advice. All members of the Davis Polk team are based in the New York office.

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