Adeptus Health and 139 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Texas, lead case number 17-31434.
The Company, which owns and operates a network of independent freestanding emergency rooms in the United States, is represented by Louis R. Strubeck, Jr. of Norton Rose Fulbright. The Company announced that it has collaborated with Deerfield Management Company and certain of its other creditors on the terms of a comprehensive financial restructuring plan that is expected to significantly reduce the outstanding debt under the Company’s existing credit facility and better position Adeptus for long-term success. While Adeptus Health’s wholly-owned subsidiaries are included in the court-supervised restructuring process, the joint venture entities to which Adeptus is a party are not part of the court-supervised process. Through this restructuring, it is expected that ownership of the Company will transition to Deerfield. Deerfield is a 23-year-old firm focused on advancing healthcare care through investment, information and philanthropy with over $8 billion in assets, and has been a long-term investor in Adeptus. Adeptus has also received a commitment from Deerfield for $45 million in debtor-in-possession (D.I.P.) financing, which is expected to support the Company’s operations during the court-supervised restructuring process. Upon completion of the restructuring, it is also expected that Deerfield will provide the Company with additional funding, operational support and healthcare expertise, ensuring that Adeptus continues to offer patients the highest-quality care, and support employees, affiliated physicians and partners.
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