Platinum Equity's LifeScan Files for Bankruptcy to Cut Debt and Cede Control to Lenders

LifeScan, a glucose-monitor maker, has filed for bankruptcy in Houston to reduce its $1.7 billion debt by over 75%, or $1.3 billion, under an agreement to cede control to its lenders. The restructuring plan will allow the company to lower its debt burden and focus on its operations.

LifeScan Global Corp., a leading manufacturer of glucose monitors, has filed for Chapter 11 bankruptcy in Houston, Texas, as part of a restructuring plan aimed at reducing its debt by over 75%. According to sources familiar with the situation, the company is seeking to cut its debt burden by approximately $1.3 billion, bringing it down from $1.7 billion [1].

The restructuring plan involves an agreement with lenders to transfer control of the company to second-lien creditors. Under the proposed deal, second-lien creditors would gain 75% of the reorganized company, up from the original 25% [1]. This shift in control is part of a broader effort to slim down LifeScan's ownership and restructure its debt pile.

LifeScan has been operating under an extended forbearance period since it elected to stop paying interest on some of its debt. The company has secured advisory support from Milbank and is working with lenders represented by Houlihan Lokey Inc. and Davis Polk & Wardwell [1].

Platinum Equity, which currently holds a 25% stake in LifeScan, would retain a 5% stake under the latest restructuring proposal. The company is also planning to launch a $100 million offer to repurchase a first-lien term loan at around 85 cents on the dollar and provide $3.5 million to third-lien lenders who sign off on the restructuring [1].

The restructuring plan is expected to allow LifeScan to lower its debt burden and focus on its core operations. By reducing its debt load, the company aims to improve its financial health and position itself for future growth. The reorganization plan is currently being discussed in Chapter 11 bankruptcy proceedings, with discussions ongoing and terms subject to change [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-14/platinum-backed-lifescan-in-talks-to-hand-control-to-lenders