A federal bankruptcy court in Delaware has approved AAC Holdings’ reorganization plan. A judge gave it the OK Tuesday. 

Under the plan, the parent company of American Addiction Center will “emerge with the support of a term loan exit financing agreement that will equal AAC’s $62.5 million debtor-in-possession loan and $51 million of prepetition senior lien term debt,” according to Law 360.

The loan comes with 18% interest, 10% to be paid in cash and 8% in kind.

Based in Brentwood, Tennessee-based, AAC provides inpatient and outpatient substance use disorder (SUD) treatment across eight states. The company filed Chapter 11 bankruptcy back in June in an effort to recapitalize its business and lighten its debt load, which clocked in at $517.3 million at the time. 

The move came following financial struggles and exits from several top company leaders back in 2019, when AAC was also delisted from the New York Stock Exchange (NYSE). On top of that, the COVID-19 emergency compounded the provider’s problems.

According to the restructuring plan, senior lenders will be paid cash from the proceeds of asset sales, as well as a new exit loan. Those lenders hold claims of about $55.7 million. Meanwhile, junior secured creditors have claims of about $450.6 million. They will take all the equity in AAC exiting bankruptcy, according to Bloomberg Law.