MALVERN, PA — LifeScan Inc. announced that the United States Bankruptcy Court for the Southern District of Texas has approved its Chapter 11 Plan of Reorganization, clearing the way for the company to emerge from its financial restructuring by the end of the year.
The approved plan will eliminate more than 75% of LifeScan’s debt, significantly strengthening its balance sheet and enabling renewed investment in growth and innovation. The company emphasized that global operations have continued uninterrupted throughout the process and will remain stable as it transitions to new ownership under a group of existing lenders, including Canyon Partners and Brigade Capital Management, LP.
“[This] approval marks a significant milestone in our financial restructuring process,” said Valerie Asbury, Chief Executive Officer of LifeScan. “I am deeply grateful for the support of our financial partners and the unwavering commitment of our employees, which have enabled us to stay focused on delivering on our mission for more than 20 million people in over 50 countries. This balance sheet restructuring provides a stronger foundation for LifeScan to support our base business, advance new growth strategies, and commence our journey to become one of the most comprehensive players in the glucose management space.”
Aaron Rizkalla, Managing Director at Canyon Partners, said the restructuring “positions LifeScan for long-term stability and growth as they continue to deliver innovative solutions for people around the world with diabetes and related conditions.”
Ray Garson, Partner at Brigade Capital Management, LP, added, “We’re pleased to support LifeScan as it advances its mission and reinforces its leadership in the glucose management sector to help the millions of people who rely on its products.”
With its financial restructuring complete, LifeScan plans to accelerate strategic initiatives aimed at expanding its role in global diabetes care and digital glucose management solutions. The company serves more than 20 million people across 50 countries and expects to emerge from bankruptcy by year-end.
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