Rotech Healthcare Inc., a provider of home respiratory products, said that it will file to restructure through a pre-prepackaged chapter 11 plan, Bloomberg News reported on Friday. Under the proposed restructuring, Rotech's $290 million in 10.5 percent second-lien notes due in 2018 would be converted to equity; holders of a $23.5 million term loan would be paid in full and the $230 million of 10.75 percent first-lien notes would be amended and the maturity potentially extended, Rotech said. Orlando-based Rotech's predecessor company also filed for chapter 11 protection in 2000, along with its then-parent, Integrated Health Services, and was spun-off in 2002 as a separate entity, it said at the time.
