American Laser Centers LLC, a provider of hair-removal, cellulite-reduction and skincare services at 156 clinics in 27 U.S. states, won court approval to sell virtually all its assets to an affiliate of Versa Capital Management.
U.S. Bankruptcy Judge Mary F. Walrath approved the sale at a hearing today in Wilmington, Delaware, court records show.
Versa, a Philadelphia-based private-equity firm, will buy the company through affiliate Bellus ALC Investments 1 LLC, which provided American Laser with $59.8 million in financing to help support operations during bankruptcy, according to court documents.
To buy the assets, Bellus will use about $30 million in debt forgiveness and the new capital left over from the bankruptcy financing after paying off lenders owed about $40.3 million.
The closely held company, based in Farmington Hills, Michigan, listed assets of $80.4 million and unsecured debt of $105 million in court papers filed last month in U.S. Bankruptcy Court in Wilmington.
Chief Financial Officer Andrew Orr blamed the bankruptcy on the slumping economy, saying in court papers that it “had a severe negative impact on the overall demand for aesthetic procedures.”
The case is In re ALC Holdings LLC, 11-13853, U.S. Bankruptcy Court, District of Delaware (Wilmington).