HearUSA, Inc. Prepares for Sale of Assets to an Affiliate of William Demant Holdings

HearUSA, Inc. EAR today announced that it has executed an agreement to sell substantially all of its assets to an affiliate of William Demant Holdings A/S,. The sale will be facilitated with court assistance under chapter 11 of the US Bankruptcy Code pursuant to a voluntary petition filed by the Company today in the Southern District of Florida. The Company announced that it will continue to operate and conduct business as usual pending the closing of the sale. The Company announced that it has entered into an asset purchase agreement in which William Demant will serve as the stalking horse bidder under section 363 of the US Bankruptcy Code. The agreement contemplates a purchase price of $80 million, including $10 million debtor-in-possession financing, plus the assumption of certain liabilities and the payment of certain cure amounts. The Company has entered into the debtor-in-possession financing agreement with William Demant to provide funds sufficient to operate the business during the bankruptcy proceedings and through final sale and wind up. The asset purchase agreement provides that if William Demant is the successful bidder, it will assume repayment of the $10 million loan. Both the asset purchase agreement and the debtor-in-possession financing agreement were filed with the court today. “We believe the DIP financing agreement with William Demant will provide the resources we need to satisfy our obligations to employees, suppliers and customers, and to meet our obligations under our managed care contracts. We are committed to make this a seamless process for all of our stakeholders,” said Chouinard.