Jobson Medical files Chapter 11
By Sean Callahan
New York—Jobson Medical Information Holdings, a b-to-b healthcare publisher that was acquired by a private equity fund of the Wicks Group of Cos. in 2005, has filed a “prepackaged” Chapter 11 plan in U.S. Bankruptcy Court, Southern District of New York. The plan was approved by a majority of the company's lenders.
“This credit agreement will provide us with the flexibility needed to continue our growth. JMIH is a very strong and profitable business and will continue to operate at the same high level of quality and reliability to which our customers, vendors and employees have become accustomed,” Jobson Medical CEO Jeff MacDonald said in a statement.
The company, which publishes titles such as 20/20 and US Pharmacist, said it expects to emerge from bankruptcy protection with a strengthened balance sheet in about 30 to 40 days.
Jobson joins a number of b-to-b media and information companies, such as Cygnus Business Media, Penton Media and Summit Business Media, that have undergone restructuring since the downturn.
Jobson is a "good company with good profits, but a company trying to manage an overlevered balance sheet, which did not allow management to focus and grow in the markets they served," said Roland DeSilva, managing partner of media investment bank DeSilva+Phillips. "They are not alone in entering Chapter 11. Many others have gone through this process over the last two years."