Invacare Corp.
IVC,
said Wednesday it and two of its U.S.-based subsidiaries have filed for bankruptcy, as it implements a refinancing aimed at reducing net debt by about 65%. The stock is currently halted for news. The Ohio-based company, which makes at-home and long-term care medical products used to promote recovery, said it will continue to pay its suppliers, and doesn’t expect the bankruptcy to hurt its ability to make and deliver products. The company has secured $70 million in debtor-in-possession (DIP) financing to provide the company with liquidity needed to keep operating during the bankruptcy. “The company expects to emerge with significantly less debt on its balance sheet and will secure additional liquidity to support long-term growth,” said Invacare Chief Executive Geoff Purtill. Separately, the company said it expects to report fourth-quarter revenue growth of 6% from a year ago to $181 million, compared with the average estimate of two analysts compiled by FactSet of $174.6 million. The stock closed Tuesday at 66 cents, up 100% from its record-low close of 33 cents on Nov. 18, 2022, but down 71.1% over the past 12 months. In comparison, the S&P 500
SPX,
has lost 10.6% the past year.
