Court Announces Intention to Confirm OSI's Reorganization Plan; Plan Will Reduce Debt from $600 Million to $175 Million.Business Editors ST. LOUIS--(BUSINESS WIRE)--Oct. 3, 2003 Outsourcing Solutions Inc. (OSI (1) (Open System Interconnection) An ISO standard for worldwide communications that defines a framework for implementing protocols in seven layers. Control is passed from one layer to the next, starting at the application layer in one station, proceeding to the ) said today that the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Eastern District of Missouri, at the close of the confirmation hearing yesterday, announced its intention to confirm the company's amended plan of reorganization. A formal written order is expected to be entered soon, and OSI anticipates emerging from Chapter 11 in the near future. "This is a great day for OSI, our clients and our associates. We will now be able to emerge from Chapter 11 with the strongest balance sheet in our history and the resources to put this company back on a growth track," said Kevin T. Keleghan, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The remarkable speed with which OSI proceeded from a voluntary Chapter 11 filing in mid-May to plan confirmation in October - a period of just over four months - is a tribute to the hard work of our associates, the loyalty of our clients and vendors, and the support of our creditors, particularly our Senior Secured Lenders." Under the terms of the plan, OSI's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. has been reduced from approximately $600 million at the time of its voluntary Chapter 11 filing in May to approximately $175 million. "While much of our recent focus has necessarily been on fixing our balance sheet, we have also taken important steps to strengthen the company operationally and to enhance our position as a leading provider of business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in services across the credit-to-cash cycle," Keleghan said. "I could not be more optimistic or excited about the future of this company." The reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. calls for the company's secured creditors to receive 69 percent of the company's fully diluted equity, with Madison Dearborn Madison Dearborn Partners (MDP) is a private equity firm specializing in buyouts of private or publicly held companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth Partners, one of the largest private equity firms in the U.S, acquiring 18.5 percent of the company's equity through a new investment, and certain other creditors receiving 5 percent of the equity. In addition, 7.5 percent of the equity has been reserved for a management performance plan. OSI is a leading business process outsourcing (BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra ) firm providing receivables management services, which link a company's cash flow objectives with credit management policies from beginning to end of the credit-to-cash cycle. By improving the revenue cycle, OSI enhances the financial performance of America's leading companies, as well as government entities, healthcare providers, educational institutions and other credit grantors. With industry-specific strategies and services, OSI delivers results that improve the bottom line through accelerated cash flow, lower operating costs, reduced bad debt expense, and improved customer retention. St. Louis-based OSI provides receivables management outsourcing to a blue-chip roster of Fortune 500 clients. For more information about OSI, visit www.osioutsourcing.com. |
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