Miami-based Cano Health, a primary care provider, has filed for Chapter 11 bankruptcy.
The primary care provider filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and is initiating a restructuring support agreement, according to a Feb. 4 press release from Cano.
Under the restructuring agreement, Cano will get $150 million in new financing from some of its current leaders. Additionally, the company will convert $1 billion in secured debt for a mix of new debt and complete ownership of the reorganized company through equity.
However, the agreement still needs to get approval from the court.
"By entering this court-supervised restructuring process, we are positioning the company to achieve those goals on an accelerated basis and focus on what we do best — improving health outcomes for patients at a lower cost," Cano Health CEO Mark Kent said in the release. "I am confident we will emerge from this process a stronger organization with the necessary resources in place to continue delivering the quality of care our patients expect and deserve. We appreciate the support of the majority of our creditors as we pursue this goal."
Cano Health 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.