Patriot National’s fourth amended plan of reorganization confirmed

By Caroline Salls

Pittsburgh, May 4 – Patriot National, Inc.’s fourth amended plan of reorganization was confirmed on Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Patriot National entered into a restructuring support agreement with the lenders under its Nov. 9, 2016 financing agreement, including Cerberus Business Finance, LLC, as the collateral agent and administrative agent, and funds and accounts managed by each of Cerberus Business Finance and its affiliates and TCW Asset Management Co. LLC.

Under the plan, all of the outstanding equity interests in the company and each of its subsidiary debtors will be extinguished, and the lenders, or their designees, will receive 100% of the newly issued equity interests in reorganized Patriot National and the subsidiary debtors.

As a result of the plan, the company and its direct and indirect subsidiaries will be owned and controlled by funds and accounts managed by Cerberus Business Finance and its affiliates and TCW Asset Management.

Also under the plan, holders of debtor-in-possession financing claims, administrative expense claims and priority claims will be paid in full in cash.

Holders of lender claims will receive their share of the newly issued equity interests and a new term loan facility.

Holders of other secured claims will receive either payment in full in cash or the collateral securing their property, or their claims will be reinstated.

Holders of specified continuing vendor claims and continuing retail agent claims who agree to terms set in the plan, including the continuation of their business relationship with the reorganized company, will be paid in full.

Holders of general unsecured claims and claims subject to subordination under Section 510(b) of the Bankruptcy Code will be entitled to receive their share of the cash pool distributed by the litigating trustee.

Holders of existing equity interests will receive no distribution.

Based in Fort Lauderdale, Fla., Patriot National provides workers’ compensation and managed care services. The company filed bankruptcy on Jan. 30 under Chapter 11 case number 18-10189.

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