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InSight Health Services Holding Corp. Receives Approval of First Day Motions

^{Published on 2010-12-14 13:50:23 - Market Wire}
 

LAKE FOREST, Calif.--([ BUSINESS WIRE ])--As previously announced, InSight Health Services Holding Corp. (the aCompanya) (OTCBB: ISGT) and its subsidiaries have commenced a prepackaged reorganization under chapter11 of the United States Bankruptcy Code in New York to deleverage the Companya™s balance sheet, reducing its debt obligations by more than $290 million by eliminating its senior secured floating rate notes due 2011 from its balance sheet. Today, the Company announced that it received court approval of its first day motions. In particular, the bankruptcy court granted interim approval for the Companya™s $15 million debtor-in-possession financing provided by Bank of America, N.A. and use of its cash resources. The financing and the Companya™s cash from operations will provide the Company with the financial flexibility to meet its ongoing financial obligations, including employee wages, healthcare benefits, vendor payments and all other operating expenses.

"We appreciate and are pleased with the Courta™s prompt approval of our first day motions"

The court also scheduled a hearing to approve the disclosure statement for the Companya™s plan of reorganization and confirm the Companya™s prepackaged chapter 11 plan for January 25, 2011, ensuring that the Companya™s expeditious restructuring remains on track.

Additionally, the Court issued a variety of orders on either a final or interim basis to ensure that the Company continues to operate uninterrupted throughout the reorganization process. The first day motions granted by the Court ensure that the filing will not impact the Companya™s day-to-day operations.

aWe appreciate and are pleased with the Courta™s prompt approval of our first day motions,a said President and CEO Kip Hallman. The approvals ensure that the Company will be able to maintain regular operations and satisfy its employee obligations, while meeting its obligations to its suppliers and serving its customers as it works to realign its capital structure and maximize stakeholder value as expeditiously as possible.

The Companya™s chapter 11 cases are pending in the United States Bankruptcy Court for the Southern District of New York. More information about the Companya™s reorganization is available at the Companya™s restructuring website: [ www.bmcgroup.com/insight ].

The new securities issued pursuant to any plan of reorganization have not been registered under the Securities Act of 1933, as amended (the aSecurities Acta), or any state securities laws. Therefore, the new securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

This release does not constitute a solicitation of consents to or votes to accept any chapter 11 plan or an offer to purchase any securities or a solicitation of an offer to sell any securities. Any solicitation or offer will be made pursuant to a disclosure statement and applicable law.

About the Company

The Company, headquartered in Lake Forest, California, is a provider of retail and wholesale diagnostic imaging services. The Company serves a diverse portfolio of customers, including healthcare providers, such as hospitals and physicians, and payors, such as managed care organizations, Medicare, Medicaid and insurance companies, in over 30 states across the country. For more information, please visit the Companya™s website: [ www.insighthealth.com ].

Safe Harbor

The foregoing contains forward-looking statements regarding the Company. They reflect the Companya™s current views with respect to current events and financial performance, are subject to many risks, uncertainties and factors relating to the Companya™s operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied by such forward-looking statements. The Company intends that such forward-looking statements be subject to the Safe Harbor created by Section 27(a) of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The words and phrases aexpect,a aestimate,a and aanticipatea and similar expressions identify forward-looking statements. Certain factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the outcome of any bankruptcy proceedings, including whether or not the proposed plan is ultimately approved by the bankruptcy court and the final terms thereof; (ii) the potential adverse impact of any chapter 11 bankruptcy filing on the Companya™s business, financial condition or results of operations; (iii) the Companya™s ability to obtain court approval with respect to motions in the chapter 11 proceedings prosecuted from time to time and to develop, prosecute and confirm and consummate any plan of reorganization with respect to the chapter 11 proceedings and to consummate all of the transactions contemplated by any such plan of reorganization or upon which consummation of such plan may be conditioned; (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the restructuring support agreement that the Company has entered into with certain of its noteholders; (v) the Companya™s ability to successfully implement its core market strategy; (vi) overcapacity and competition in the Companya™s markets; (vii)reductions, limitations and delays in reimbursement by third-party payors; (viii)contract renewals and financial stability of customers; (ix) changes in the nature of commercial health care insurance arrangements, so that individuals bear greater financial responsibility through high deductible plans, co-insurance and co-payments; (x)conditions within the healthcare environment; (xi) the potential for rapid and significant changes in technology and their effect on the Companya™s operations; (xii)operating, legal, governmental and regulatory risks; (xiii) conditions within the capital markets, including liquidity and interest rates and (xiv) economic (including financial and employment market conditions), political and competitive forces affecting the Companya™s business, and the countrya™s economic condition as whole.