Elements Behavioral Health and 31 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-11212 (EBH Topco, LLC). The Company, which operates treatment centers for addiction and mental health disorders in the U.S., is represented by Christopher A. Ward of Polsinelli.
In a press release, the Company announced that it will execute an asset purchase agreement (the “Purchase Agreement”) with a group of its First Lien Lenders (“Lenders”). To facilitate the sale, the Company initiated proceedings under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. All Elements Behavioral Health programs continue to provide its innovative and comprehensive programs and patient services. “Our commitment to bringing life-changing treatments to our patients and their families is unwavering and we hope that through this process we can leverage new resources and build a strong financial foundation, so that we can continue to help people reclaim their lives from addiction and mental health issues,” said Dr. David Sack, Chief Medical Officer and Interim Chief Executive Officer of Elements Behavioral Health. “Treatment centers remain open and the company will continue to serve existing and new patients. As we move forward with our restructuring, we expect operations to continue as normal across our facilities, and we are committed to supporting our employees and maintaining our relationships with our business partners and vendors. We look forward to better positioning the Company for long-term success and profitability.”
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