Akumin Inc. filed a pre-packaged joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on October 22, 2023. As per the plan filed, administrative claims, professional fee claims, priority tax claims, restructuring expenses, other secured claims, other priority claims, shall be paid in full in cash. DIP claims of $75 million shall be converted into new common stock.

Prepetition RCF claims shall receive its pro rata share of the new RCF exit facility, if reorganization transaction occurs; if sale transaction occurs then, Prepetition RCF claims shall receive payment in full in cash. Prepetition 2025 notes claims shall receive, if reorganization transaction occurs, its pro rata share of the New 2027 Notes and the opportunity to voluntarily participate in the Reverse Dutch Election Opportunity by submitting a Reverse Dutch Election Form prior to the Reverse Dutch Election Deadline. If sale transaction occurs, then Prepetition 2025 Notes Claims shall receive payment in full in cash.

Prepetition 2028 Notes Claims shall receive, if reorganization transaction occurs, its pro rata share of the New 2028 Notes and the opportunity to voluntarily participate in the Reverse Dutch Election Opportunity by submitting a Reverse Dutch Election Form prior to the Reverse Dutch Election Deadline. If sale transaction occurs, then Prepetition 2025 Notes Claims shall receive payment in full in cash. Prepetition Series A Note Claims shall receive, if reorganization transaction occurs, 100% of the New Common Stock of Reorganized Parent; if sale transaction occurs, then its shall receive payment in full in cash.

General unsecured claims shall be settled in cash. Intercompany claims shall either be reinstated or cancelled. Existing common stock interests hall be canceled, released, and extinguished and will be of no further force or effect.

Notwithstanding the foregoing, in the event the reorganization transaction is consummated, on the effective date each holder of an existing common stock interest shall receive its pro rata Share of $25 million in cash to be contributed by the consenting investor to the holders of existing common stock interests other than the consenting investor and each holder of an existing common stock interest that satisfies the CVR distribution conditions shall receive its pro rata share of the CVRs, which shall be distributed pursuant to the CVR distribution framework. In the event sale transaction occurs, then each holder of an existing common stock interest shall receive its pro rata share of any proceeds available after all claims and obligations of the debtors? estates have been satisfied in full in cash.

Other equity interests shall be cancelled and shall not receive any distribution under the plan. Intercompany interests shall either be reinstated or cancelled. The plan shall be funded through cash, cash generated from operations, if the reorganization transaction is consummated, funds from the consenting investor direct investment, the DIP Facility, and the consenting investor cash contribution, and (iv) if the sale transaction is consummated, the proceeds of the sale transaction.