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CASE PROFILE: Prison healthcare provider Wellpath looks to run lender-backed Chapter 11 sale process and reorganization around corrections business

Wellpath Holdings, an HIG Capital-backed provider of mental and medical health care in prisons and jails, entered bankruptcy with the goal of selling its behavioral health business, backed by a stalking horse bid from existing lenders, and reorganizing its corrections business through either a debt-for-equity exchange or asset sale.

Wellpath filed its Chapter 11 petition on Monday (11 November) in the US Bankruptcy Court for the Southern District of Texas, reporting USD 644.1m in prepetition funded secured debt. The company comes into the process with a restructuring support agreement (RSA) signed by 85% of Wellpath’s first lien lenders and at least 80% of the company’s second lien lenders.

 

 

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