Exactech Finalizes Updated Reorganization Plan with Creditors Ahead of Court Approval

Exactech's Updated Reorganization Plan

Exactech, a leading player in the global medical technology sector, has made significant progress in its restructuring journey by reaching a consensual agreement with the Unsecured Creditors Committee (UCC). The company recently submitted its updated plan of reorganization to the court, marking a crucial step towards financial stability and renewed operational capacity.

In the forthcoming months, Exactech aims to finalize its plan and gain court approval, which is expected in early September. This reorganization comes in the wake of an agreement with the UCC, outlining a strategic approach to navigate the company's current challenges while simultaneously pursuing an asset sale to a new ownership group.

The amended plan incorporates a trust structure meant to facilitate claims by unsecured creditors, particularly litigation plaintiffs, allowing them to continue seeking recoveries from third parties not involved in the bankruptcy proceedings. With this arrangement, Exactech hopes to establish a fair recovery process that acknowledges the claims of all creditors while ensuring business continuity under new ownership.

To secure its operational needs during the transition, Exactech has also negotiated additional financing of approximately $60 million, in addition to the $90 million already in place. This brings the total financing to about $150 million, bolstering the company’s resources as it continues its day-to-day operations.

The new ownership group, which comprises reputable firms such as Strategic Value Partners, LLC (SVP), Stellex Capital Management, LLC, and Greywolf Capital Management LP, is poised to take over a majority of Exactech's assets and operations once the court grants approval. This ownership change represents not just a financial acquisition but a strategic partnership aimed at elevating Exactech's presence in the orthopedic sector.

Darin Johnson, President and CEO of Exactech, expressed optimism about this pivotal agreement, emphasizing its significance in the firm’s recovery process. He stated, “This agreement reflects a critical milestone on the path to court approval of our reorganization plan.” Johnson conveyed confidence in the readiness and capability of the new ownership to steer the company toward long-term success, firmly standing by its mission to become the leading partner for orthopedic surgeons.

Furthermore, David Molton, representing the UCC, applauded the collaborative efforts made during the development of the plan—acknowledging the importance of ongoing litigation claims while ensuring business operations remain streamlined. This thoughtful integration into the reorganization strategy seeks to garner support from all involved parties, identifying it as a win-win for the company and its creditors.

The collective experience and financial clout of the new owners bring with them an estimated $29 billion in assets under management, alongside a wealth of operational expertise within the medical technology and manufacturing fields. SVP, Stellex, and Greywolf aim to leverage this expertise to mitigate risk and enhance value in Exactech's future operations.

As the anticipated court date approaches in early September, stakeholders will be eagerly awaiting the validation of this proposed plan. The outcome could transform Exactech's operational landscape and solidify its position in the competitive medical technology arena.

For more information about Exactech’s innovative orthopaedic solutions, please visit Exactech's website.