Shares of Quorum Health cratered Wednesday, losing more than half of their value, after investment firm Kohlberg Kravis Roberts said talks with the hospital operator have turned to exploring “a reorganization […] in which no assurances can be given that holders of […] common stock will receive any consideration.” Fund managers under the KKR umbrella in December told the leaders of Brentwood-based Quorum they were willing to lead a recapitalization that would restructure the company’s big debt load and pay shareholders $1 per share. On Tuesday, KKR said such a buyout now looks to be off the table and that, if there is to be a deal, it will likely come with little or nothing for equity investors. In a statement, Quorum executives said they continue to have “constructive discussions” with KKR and other debt and equity holders about restructuring the company’s finances, which have been weighed down by a $1.2 billion debt load for years.
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Source: https://www.nashvillepost.com/business/health-care/article/21121401/quorum-crashes-as-kkr-says-talks-now-focused-on-reorganization