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Cases & Deals

November 5, 2019

White Oak HealthCare Finance, LLC Repaid in Full in Connection with Debtor-in-Posession Revolving Loan

King & Spalding advised White Oak HealthCare Finance, LLC, in its being repaid in full in connection with a $57.7 million debtor-in-possession revolving loan (“DIP Financing”) provided to LifeCare Holdings LLC and certain of its affiliates (collectively, “LifeCare”) in May 2019.  As part of the DIP Financing, White Oak advanced new money, “rolled up” its prepetition debt, and primed the existing term loan lenders.  LifeCare operated 17 healthcare facilities across the U.S. and sold substantially all of its assets (other than accounts receivables and its home health business) as part of three bankruptcy approved sales.  White Oak was repaid from the asset sales and the post-sale accounts receivable collections.