General Electric Company : Medical-Information Company Jobson Medical Enters Chapter 11
02/03/2012 | 12:17pm
By Stephanie Gleason
Of DOW JONES DAILY BANKRUPTCY REVIEW
Medical information and education company Jobson Medical Information Holdings LLC filed for Chapter 11 bankruptcy Thursday with a pre-packaged bankruptcy plan that gives the company three more years to pay off its loan and grants its secured lender equity in the new company.
Jobson said in court documents filed with the U.S. Bankruptcy Court in Manhattan that it reached an agreement with lender General Electric Capital Corp. after beginning negotiations last August to restructure its $117.3 million loan, which matured Dec. 1.
The new loan, which has the same principal amount, will mature Dec. 14, 2014. In exchange for the extension, GE Capital will receive 20% equity in the company.
"This credit agreement will provide us with the flexibility needed to continue our growth," Chief Executive Jeff MacDonald said in a statement.
The company's plan didn't gain 100% support of its lenders, although it was supported by secured lenders and another class of claimants entitled to 80% equity under the plan, so Jobson filed for Chapter 11 bankruptcy to execute it. The company said it expects to emerge from bankruptcy in 30 to 40 days.
The company "is a very strong and profitable business and will continue to operate at the same high level," MacDonald said. "We are delighted to have the support of the majority of our lenders and the ability to use this fast-track process."
Jobson claimed $134.2 million in liabilities and $108.6 million in assets and filed for bankruptcy along with 16 other subsidiaries, according to court documents.
In 2011, the company had $72 million in revenue and a $1.3 million net loss. In 2010, Jobson had $85 million in revenue and a $340,000 loss.
Jobson Medical's primary business is providing marketing services to drug and medical-device companies, which makes up 48% of its revenue. The company also publishes medical journals and creates websites for the pharmacy and eye-care sectors and provides continuing medical-education courses for physicians and other health-care professionals.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By Stephanie Gleason, Dow Jones Daily Bankruptcy Review; 202-862-1347; stephanie.gleason@dowjones.com
