Bankrupt prison healthcare company Wellpath Holdings received court approval on Wednesday to spin off its behavioral health division to a group of its lenders. The lender group will acquire Wellpath Recovery Solutions, which provides services at inpatient psychiatric hospitals, residential treatment centers, mental health rehabilitation centers and community-based services, in exchange for canceling about $375 million of Wellpath’s debt. U.S. Bankruptcy Judge Alfredo Perez approved the sale at a court hearing in Houston, Texas, after Wellpath said that no outside buyer had offered more than the lenders’ debt deal.
Read the full article: Wellpath Spins off Behavioral Health Unit in Bankruptcy Sale //
Source: https://www.reuters.com/legal/government/wellpath-spins-off-behavioral-health-unit-bankruptcy-sale-2025-01-08/