Envision Healthcare Corp. has hired restructuring advisers and is contemplating a bankruptcy filing after the Covid-19 pandemic halted elective surgeries and left the company struggling to manage the $7 billion of debt from its 2018 leveraged buyout, according to people with knowledge of the matter. The KKR & Co.-backed company, one of the largest physician staffing firms in the U.S., has already been holding back pay for doctors, and it has struggled to convince its bondholders to take a haircut in exchange for a new loan that would pare its debt load. The company recently hired law firm Kirkland & Ellis LLP, and KKR is working with lawyers at Paul Weiss Rifkind Wharton & Garrison LLP to advise on Envision’s restructuring options, including a potential Chapter 11 filing, said the people, who asked not to be identified because the discussions are private. The company sought to ease its debt load with a proposal for bondholders to swap $1.2 billion of unsecured notes at a discount for a new term loan with higher priority and an earlier due date. But just $198 million of those holders have agreed to the swap. Creditors have until April 30 to decide whether to participate in the deal.
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Source: https://www.bloomberg.com/news/articles/2020-04-20/kkr-s-envision-healthcare-said-to-consider-bankruptcy-filing