Cano Health files for bankruptcy, receives $150 mln financing commitment (updated)

Cano Health

05/02/2024 05:57

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       Feb 5 (Reuters) - Cano Health  CANO.N  filed for Chapter
11 bankruptcy in the U.S. Bankruptcy Court for the District of
Delaware late on Sunday and said it entered into a restructuring
support agreement to reduce debt and solicit potential offers,
including the sale of the firm.
    The primary care provider said it has received a commitment
for $150 million in new debtor-in-possession financing from some
of its existing lenders, which is expected to provide sufficient
liquidity to support its ongoing operations. 
    Under the Restructuring Support Agreement (RSA), Cano Health
said it can convert nearly $1 billion in secured debt into a
combination of new debt and full equity ownership in the
reorganized entity. Further, the agreement permits exploration
of partnerships and potential offers, including the sale of the
company or substantially all its assets, Cano said.
    The company expects to achieve about $290 million of
annualized cost reductions by the end of 2024 and to emerge from
the restructuring process in the second quarter of 2024.
    Cano Health listed estimated assets and liabilities in the
range of $1 billion to $10 billion, according to the court
filing.   
        The company also flagged doubts about its ability to
continue as a going concern last year and said it would lower
costs by reducing 17% of its workforce. 

 (Reporting by Akanksha Khushi in Bengaluru; Editing by Mrigank
Dhaniwala and Dhanya Ann Thoppil)
 ((Akanksha.Khushi@thomsonreuters.com;))