MIAMI - Cano Health, Inc. (NYSE: CANO), a primary care provider, announced today that it has reached an agreement with the Unsecured Creditors Committee and obtained court approval for its Disclosure Statement, signaling a move towards exiting Chapter 11 bankruptcy by the third quarter of 2024.
The agreement, backed by the Ad Hoc Lender Group and approved by the U.S. Bankruptcy Court for the District of Delaware, allows Cano Health to begin soliciting creditor approval for its Plan of Reorganization. This development is a significant step in the company's financial restructuring process, which has received broad creditor support.
CEO Mark Kent highlighted the progress made under the company's Transformation Plan, focusing on the core Florida market to drive profitability and productivity while maintaining its mission to improve health outcomes at a lower cost. Kent also noted the company's trajectory towards achieving $290 million in cost reductions and emerging from bankruptcy as a stronger competitor in the healthcare market.
Cano Health entered into a Restructuring Support Agreement on February 4, 2024, with lenders holding a majority of its secured and unsecured debt. The agreement includes converting nearly $1 billion of secured debt into new debt and equity in the reorganized company.
The information in this article is based on a press release statement from Cano Health.
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