Miami-based Hygea Holdings, which owns physician practices, pharmacies and diagnostic facilities, filed for Chapter 11 bankruptcy Feb. 19, according to Bloomberg Law.
Hygea and 32 affiliates entered bankruptcy with roughly $200 million in debt. Under a proposed restructuring agreement, Hygea would give secured lender Bridging Finance all of the equity in the reorganized company.
Hygea CEO Keith Collins said the company landed in bankruptcy due to its "aggressive growth strategy," which resulted in the acquisition of underperforming physician practices, according to Law360, which cited court documents. With roughly $327,000 of negative cash flow per week, Hygea is operating at a loss.