HearUSA, Inc. (AMEX: EAR) Files for Chapter 11 Protection With Agreement to Sell Assets


HearUSA, Inc. voluntarily filed for chapter 11 protection today in the Southern District of Florida bankruptcy court in order to effectuate a proposed sale of substantially all of its assets to an affiliate of William Demant Holdings A/S. HearUSA (AMEX: EAR) operates a network of approximately 1,800 "hearing care provider locations," 134 of which are company-owned. In its most recent annual report, HearUSA reported a net loss of $7.7 million on approximately $84 million in annual revenues and $81 million in assets against $60 million in liabilities.

Pursuant to the proposed stalking horse sale agreement, the affiliate of William Demant Holdings will acquire substantially all of HearUSA's assets for a purchase price of $80 million (which includes $10 million in debtor-in-possession (or DIP) financing), plus the assumption of certain obligations and the payment of certain cure claims. In addition to filing the proposed DIP financing agreements, HearUSA also sought certain "first day" relief with respect to vendors, employees and others. Links to those first day pleadings are provided in the attached document.

To access all major HearUSA bankruptcy court filings, please visit:


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Randall Reese, Restructuring Concepts LLC | Attorney Advertising

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