Brentwood, Tenn.-based Quorum Health has emerged from bankruptcy, about three months after entering the Chapter 11 restructuring process.
Quorum, a spinoff of Franklin, Tenn.-based Community Health Systems, filed for bankruptcy in early April. The for-profit company asked the bankruptcy court to expedite approval of its restructuring plan, and the court approved the $1.3 billion plan June 29.
Quorum exited bankruptcy with approximately $500 million less debt and a new CEO and board of managers.
The company named Joey Jacobs CEO. Mr. Jacobs, who most recently served as chair and CEO of Franklin, Tenn.-based Acadia Healthcare, will also serve on Quorum's board of managers.
"This company has successfully turned a crucially important corner and I'm excited to join Quorum Health as we begin this new chapter," said Mr. Jacobs in a news release. "We appreciate the court's diligence and are grateful for the wisdom of our bondholders in recognizing the strength of our operations and taking the difficult but necessary steps to provide a platform for success."
Quorum's board of managers will be led by Catherine Klema, president of Nettleton Advisors, a financial and strategic advisory firm for healthcare organizations.