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$Cano Health(CANO.US$ MIAMI - Cano Health, Inc. (NYSE: CANO), a primary care provider focusing on value-based care, announced Monday that it has commenced voluntary Chapter 11 proceedings to restructure its debt and has obtained $150M in new financing. The restructuring agreement, supported by a significant majority of its lenders, is intended to reduce the company's debt and aid in executing its Transformation Plan aimed at cutting costs and enhancing productivity.
CEO Mark Kent emphasized the company's commitment to advancing its Transformation Plan and maintaining high-quality patient care. Cano Health has taken steps to focus on its core Florida Medicare Advantage and ACO REACH lines of business, which include divesting operations in Texas and Nevada and exiting markets in California and Puerto Rico. These moves are expected to yield approximately $290M in annualized cost reductions by the end of 2024.
The company has filed customary "first day" motions to ensure that operations continue smoothly during the restructuring, including paying wages and fulfilling obligations to affiliate physician groups. Cano Health also seeks court authority to pay critical vendors to maintain uninterrupted service at its medical centers.
Cano Health anticipates court approval for a Plan of Reorganization and expects to emerge from the restructuring process in the second quarter of 2024. The restructuring support agreement (RSA) outlines the conversion of nearly $1B in secured debt into new debt and equity in the reorganized company and allows for the exploration of strategic partnerships and potential offers.![]()
CEO Mark Kent emphasized the company's commitment to advancing its Transformation Plan and maintaining high-quality patient care. Cano Health has taken steps to focus on its core Florida Medicare Advantage and ACO REACH lines of business, which include divesting operations in Texas and Nevada and exiting markets in California and Puerto Rico. These moves are expected to yield approximately $290M in annualized cost reductions by the end of 2024.
The company has filed customary "first day" motions to ensure that operations continue smoothly during the restructuring, including paying wages and fulfilling obligations to affiliate physician groups. Cano Health also seeks court authority to pay critical vendors to maintain uninterrupted service at its medical centers.
Cano Health anticipates court approval for a Plan of Reorganization and expects to emerge from the restructuring process in the second quarter of 2024. The restructuring support agreement (RSA) outlines the conversion of nearly $1B in secured debt into new debt and equity in the reorganized company and allows for the exploration of strategic partnerships and potential offers.
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