By Dean Seal

Invacare Corp. has filed multiple voluntary bankruptcy cases in Texas as part of a broader restructuring deal signed with its debt holders.

The medical equipment maker said Wednesday it and two U.S.-based subsidiaries have filed for Chapter 11 protections in the U.S. Bankruptcy Court for the Southern District of Texas. Its international operations aren't included in the cases and "remain strong," Invacare said.

The filings are part of a restructuring support agreement Invacare said it has reached with "substantially all of its debt holders" that will reduce its debt balance by 65%, or about $240 million.

The deal also provides $60 million of equity capital that can be used to repay certain debt obligations, Invacare said.

Invacare said it doesn't expect global manufacturing and product delivery to be interrupted by the bankruptcy filings.

"The company expects operations to continue and to pay its suppliers in the ordinary course of business for all authorized goods delivered and services rendered after the filing date," Invacare said.

Shares fell 19.7% to 53 cents before premarket trading was halted Wednesday morning.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 01, 2023 09:04 ET (14:04 GMT)

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