Diagnostic imaging center operator Insight Health Services of Lake Forest, Calif., said that it has emerged from Chapter 11 bankruptcy. Following a successful two-month prepackaged restructuring, InSight reported that it has eliminated $194.5 million of long-term debt, and strengthened its balance sheet.
InSight also announced that it has obtained from Bank of America a revolving credit facility of up to $30 million that will be used to provide working capital for ongoing operations.
A new InSight board of directors has been appointed concurrently with InSight’s emergence from Chapter 11. The new members of the board of directors will be Eugene Linden, chief investment strategist of Bennett Management, a hedge fund; Wayne Lowell, founder of Jonchra Associates, a provider of strategic and operating advice to senior management of venture capital-funded and publicly held entities; Richard Nevins, a managing director and co-head of the recapitalization and restructuring group at Jefferies & Company, from 1998 until his retirement in 2007; James Ovenden, chief financial officer and a founding principal of OTO Development, a hospitality development company established in 2004; and Keith Rechner, CEO and president of Benefit Advisors, an employee-benefits consulting firm. Continuing on the board of directors will be Bret Jorgensen and Steven Segal.