St. Louis, MO – Outsourcing Solutions Inc. (OSI) said today that the U.S. Bankruptcy Court for the Eastern District of Missouri, at the close of the confirmation hearing yesterday, announced its intention to confirm the company’s amended plan of reorganization. A formal written order is expected to be entered soon, and OSI anticipates emerging from Chapter 11 in the near future.
“This is a great day for OSI, our clients, and our associates. We will now be able to emerge from Chapter 11 with the strongest balance sheet in our history and the resources to put this company back on a growth track,” said Kevin T. Keleghan, president and CEO. “The remarkable speed with which OSI proceeded from a voluntary Chapter 11 filing in mid-May to plan confirmation in October – a period of just over four months – is a tribute to the hard work of our associates, the loyalty of our clients and vendors, and the support of our creditors, particularly our Senior Secured Lenders.”
Under the terms of the plan, OSI’s long-term debt has been reduced from approximately $600 million at the time of its voluntary Chapter 11 filing in May to approximately $175 million.
“While much of our recent focus has necessarily been on fixing our balance sheet, we have also taken important steps to strengthen the company operationally and to enhance our position as a leading provider of business process outsourcing services across the credit-to-cash cycle,” Keleghan said. “I could not be more optimistic or excited about the future of this company.”
The reorganization plan calls for the company’s secured creditors to receive 69 percent of the company’s fully diluted equity, with Madison Dearborn Partners, one of the largest private equity firms in the U.S, acquiring 18.5 percent of the company’s equity through a new investment, and certain other creditors receiving 5 percent of the equity. In addition, 7.5 percent of the equity has been reserved for a management performance plan.
OSI is a leading business process outsourcing (BPO) firm providing receivables management services, which link a company’s cash flow objectives with credit management policies from beginning to end of the credit-to-cash cycle. By improving the revenue cycle, OSI enhances the financial performance of America’s leading companies, as well as government entities, healthcare providers, educational institutions and other credit grantors. With industry-specific strategies and services, OSI delivers results that improve the bottom line through accelerated cash flow, lower operating costs, reduced bad debt expense, and improved customer retention. St. Louis-based OSI provides receivables management outsourcing to a blue-chip roster of Fortune 500 clients. For more information about OSI, visit www.osioutsourcing.com.
