NEW YORK (Reuters) – Medical supplies provider CCS Medical Inc. filed for Chapter 11 bankruptcy protection on Wednesday and said it had reached an agreement with some lenders to cut its debt and improve its capital structure.
The company, which helps distribute diabetes test strips, insulin pumps, urological supplies and prescription drugs, said in a release that its deal with certain holders of its first lien loan will allow it to reduce its debt to about $200 million from about $522 million.
CCS Medical, which filed for bankruptcy in the District of Delaware, has also received a commitment for $10 million in debtor-in-possession (DIP) financing from a group of existing first lien lenders that can be used to support the business as it restructures in bankruptcy court.
The agreements are subject to bankruptcy court approval.
CCS Medical, owned by Warburg Pincus, was founded in 1994 in Clearwater, Florida, where it maintains its headquarters, according to the company’s website.
It said it plans to continue business operations as usual and that it “has ample cash on hand.”
Court documents showed the company had assets of between $100 million to $500 million and liabilities of between $500 million and $1 billion.
(Reporting by Chelsea Emery, editing by Matt Daily)