%1

The outpatient clinics associated with Springfield (Vt.) Hospital could have a plan to exit chapter 11 bankruptcy by the end of January, while the hospital itself aims to have such a plan by April, according to recent court filings, the Valley News reported. What health services will look like following the organizations’ exit from bankruptcy remains unclear, said Tom Huebner, Rutland Regional Medical Center’s former CEO, who is monitoring the process for Gov. Phil Scott’s office. “People are still working hard to make sure that patients are well served,” Huebner said yesterday. The “effort is to make sure (the) right array of services are available to patients going forward.” Springfield Hospital and Springfield Medical Care Systems — an associated, federally qualified health center — entered bankruptcy in June, aiming to craft a plan to deal with $20 million of debt, while continuing to provide medical care for community members and employment for roughly 700 people.

Natural gas producer Arsenal Energy Holdings LLC won bankruptcy court approval for its second prepackaged restructuring this year, cutting roughly $400 million in debt and turning creditors into shareholders, WSJ Pro Bankruptcy reported. Bankruptcy Judge Brendan Shannon yesterday approved a reorganization plan backed by all major lenders after all objections were resolved. The approval gives Wexford, Pa.-based Arsenal the green light to exit bankruptcy again. The restructuring will wipe out the equity stakes of First Reserve Management LP, Northwestern Mutual Life Insurance Co. and Goldman Sachs Group Inc.’s private-equity arm, which took control of Arsenal after its last bankruptcy. Arsenal filed for chapter 11 bankruptcy in November for a second time this year, blaming falling natural gas prices, tightening lending standards and high transportation costs. Both filings accompanied a pre-packaged chapter 11 proposal.

Acosta Inc. will make a speedy exit out of chapter 11 two weeks after filing for bankruptcy protection with a prepackaged reorganization plan that hands control of the marketing services company to its lenders in exchange for eliminating about $3 billion in debt, WSJ Pro Bankruptcy reported. Acosta intends to quickly emerge from bankruptcy later this week following approval of its plan by Bankruptcy Judge Christopher Sontchi. Jacksonville, Fla.-based Acosta’s plan will allow lenders and bondholders to decide whether to cash out or become equity owners of the reorganized company in exchange for shedding debt. The new owners will also pump $325 million of new equity into the reorganized company. Acosta’s reorganization plans gives lenders an 85 percent stake in the reorganized company. A 15 percent stake is earmarked for bondholders. A group of four lenders and bondholders — Elliott Management Corp., Oaktree Capital Management LP, Davidson Kempner Capital Management LP and Nexus Capital Management — have agreed to backstop the plan, which includes a rights offering for preferred stock in the new Acosta.

Switzerland and Houston-based oilfield service company Weatherford International has emerged from chapter 11 bankruptcy with roughly $10 billion of financial support, the Houston Chronicle reported. In a Friday morning statement, Weatherford announced that the company had emerged from chapter 11 with $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, secured a $195 million letter of credit facility, and secured over $900 million of liquidity. Currently traded as a penny stock, Weatherford expects to return to the New York Stock Exchange after the company reports its fourth quarter earnings, holds an investor call and completes the fresh-start accounting process. That process is expected to be completed by early March. With roots in Texas going back to 1941, Weatherford grew to become the nation's fourth-largest oil field services company but racked up $10 billion in debt along the way. Headquartered in Switzerland but incorporated in Ireland and its principal offices in Houston, Weatherford has not made a profit since the third quarter of 2014.