Invacare Corp., a maker and distributor of wheelchairs, hospital beds and other medical equipment, filed for bankruptcy with a deal in hand with its lenders and bondholders to slash $240 million in debt and emerge from chapter 11 within four months, WSJ Pro Bankruptcy reported. The company put itself and two of its U.S. subsidiaries under chapter 11 protection on Tuesday in the U.S. Bankruptcy Court in Houston. The chapter 11 filing doesn’t include its businesses outside the U.S., which generate a majority of the company’s sales, according to a court filing by Chief Financial Officer Kathleen Leneghan. Ahead of the filing, the company reached an agreement with its lender Highbridge Capital Management LLC and a group of bondholders owning two-thirds of its unsecured notes to slash debt from $358 million to roughly $118 million, according to Ms. Leneghan’s court filing. Highbridge is also providing a $70 million debtor-in-possession loan to fund the company’s stay in chapter 11.
