Medical Depot Inc. has completed an out-of-court restructuring in which private-equity owner Clayton, Dubilier & Rice LLC injected new money to maintain control of the company, WSJ Pro Bankruptcy reported. Medical Depot, which operates under the name Drive DeVilbiss Healthcare and manufactures wheelchairs, canes, walkers and other medical equipment, eased a liquidity crunch with a restructuring deal that involves $35 million in financing from Clayton Dublier. Junior lenders exchanged their claims into new debt that pays interest in-kind, meaning with debt instead of cash, and received a slice of preferred equity as well. Senior loans were reinstated, according to sources. Medical Depot was formed in 2015 through the merger of Drive Medical and DeVilbiss Healthcare and was acquired by Clayton Dubilier in 2016. The company has struggled since the combination. Medical Depot, which had roughly $600 million of debt prior to the restructuring, was advised by Kirkland & Ellis LLP and Evercore Inc., while Clayton Dubilier was advised by Debevoise & Plimpton LLP. Junior lenders were advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP.
