Cano Well being recordsdata for chapter, receives $150-mln financing dedication – ET HealthWorld | Pharma

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Bengaluru: Cano Health filed for Chapter 11 chapter within the U.S. Bankruptcy Court for the District of Delaware late on Sunday and mentioned it entered right into a restructuring help settlement to cut back debt and solicit potential presents, together with the sale of the agency.

Shares of the Miami-based firm fell greater than 50 per cent earlier than the bell.

The first care supplier mentioned it has acquired a dedication for $150 million in new debtor-in-possession financing from a few of its present lenders, which is anticipated to supply enough liquidity to help its ongoing operations.

Beneath the Restructuring Assist Settlement (RSA), Cano Well being mentioned it might probably convert almost $1 billion in secured debt into a mixture of latest debt and full fairness possession within the reorganised entity. Additional, the settlement permits exploration of partnerships and potential presents, together with the sale of the corporate or all its property, Cano mentioned.

The corporate expects to attain about $290 million of annualised price reductions by the top of 2024 and to emerge from the restructuring course of within the second quarter of 2024.

Cano Well being listed estimated property and liabilities within the vary of $1 billion to $10 billion, in keeping with the courtroom submitting.

The corporate had flagged doubts about its skill to proceed as a going concern final 12 months and mentioned it might decrease prices by lowering 17 per cent of its workforce.

  • Revealed On Feb 5, 2024 at 04:31 PM IST

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