Carestream Health, an X-ray and medical imaging company, filed for Chapter 11 bankruptcy protection Aug. 23, according to documents filed in U.S. Bankruptcy Court in Delaware.
Carestream, which reported $1.1 billion in revenue in 2021 and had $1.03 billion in debt, said it intends to file for bankruptcy with a lender-backed restructuring proposal that would cut its debt by $470 million.
According to court documents, the restructuring would hand the company's equity over to lenders and pay junior creditors in full.
The company attributed its decline in revenue to customers' preferences for digital-only medical imaging systems, which are less profitable for the company than its print products.
The company also said the government's push to drive down healthcare costs, such as the Chinese government's recent turn toward volume-based procurement of healthcare imaging services, caused the company's profits to tumble, according to the court papers.
In 2021, the company tried to find a buyer, but none of the offers were higher than its $1 billion debt load.
Carestream seeks bankruptcy court approval of its restructuring on Sept. 28.