Paul, Weiss represented funds managed by Madison Dearborn Partners, LLC (MDP) as sponsors and debtor-in-possession (DIP) lenders in the prearranged chapter 11 cases of Benefytt Technologies, Inc. Benefytt is a health insurance technology company that markets and sells Medicare and private health insurance products, agent technology systems and insurance policy administration platforms.
Benefytt commenced chapter 11 cases in the Southern District of Texas on May 23 to implement a comprehensive restructuring of its $606 million in debt. Under the prearranged plan, Benefytt will be split into two companies: one that owns Benefytt's existing contracts and related revenue streams, and an operations company.
Under the restructuring support plan, MDP and other co-investors provided approximately $64 million, including a $35 million DIP facility, in financing to fund the new operations company. Upon emergence, our clients and the other co-investors will credit bid certain outstanding claims and own 92.5% of the new operations company’s equity. Term lenders will own the other company.
The Paul, Weiss team was led by corporate partner Ian Hazlett and restructuring counsel Joe Graham, and includes corporate partners Adam Givertz and Sung Pak; restructuring partner Paul Basta; litigation partners Gregory Laufer and William Clareman; tax partners Scott Sontag and Patrick Karsnitz; and intellectual property partner Jonathan Ashtor and counsel Elana Bensoul.
