Drive DeVilbiss struggles with $600M in debt

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Friday, September 6, 2019

PORT WASHINGTON, N.Y. – Medical Depot, which operates as Drive DeVilbiss Healthcare, has begun restructuring talks with its senior lenders, the Wall Street Journal has reported.

In a bid to avoid filing for bankruptcy, a group of lenders and advisors is trying to reach an out-of-court deal to restructure $600 million in debt, according to the newspaper. Lenders recently signed a nondisclosure agreement to access privileged information about the company, it has reported.

The advisors include the law firm Devevoise & Plimpton LLP, which represents Clayton, Dubilier & Rice, the private equity firm that bought Drive DeVilbiss about three years ago, in August 2016. Drive Medical bought DeVilbiss Healthcare about a year earlier, in July 2015, capping off a run of eight acquisitions in a one-year span.

CD&R made its investment “alongside existing management,” including Harvey Diamond, but it named a new CEO, Bob Gilligan, the former CEO of GE Industrial Solutions, in December of 2017. Diamond transitioned to vice chairman.

Attempts to reach Drive DeVilbiss for comment were not successful.