A Medical Device Daily
CCS Medical (Clearwater, Florida), a direct-to-consumer provider of medical supplies, reported the approval by the U.S. Bankruptcy Court for the District of Delaware of all of the company's first day motions, allowing for the continuation of normal business operations during the restructuring process.
"As anticipated, we have been granted various approvals that help ensure our operations will continue without interruption as we work to strengthen our capital structure," said CEO John Miclot. "The timely approval of our first day motions is the first major step forward in our financial restructuring. As always, CCS Medical remains focused on enhancing patient satisfaction, and we look forward to maintaining our relationships with our suppliers and valued customers throughout this process in order to accomplish that goal."
The court granted CCS interim approval to access its $10 million debtor-in-possession (DIP) financing from a group of existing first lien lenders. The company says it believes it has ample cash on hand, in addition to cash generated from ongoing operations, to support the business during the restructuring process. However, the DIP financing can be used by the company to support the business as necessary.
CCS also reported that it received the court's approval to, among other things, pay outstanding employee wages, health benefits, and certain other employee obligations. Additionally, the company said it is authorized to continue to honor its current customer policies and programs, to ensure the restructuring process will not affect its customers.