Thrasys and its sole subsidiary, Comprehensive Care Alliance, which has no operations, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

Thrasys is a subsidiary of UpHealth Holdings, the subsidiary of UpHealth that filed for Chapter 11 protection on Sept. 19. UpHealth Holdings’ Chapter 11 filing followed the Sept. 14 decision by a trial court in New York to grant summary judgment in favor of Needham & Company in a lawsuit unrelated to the company’s operations.

UpHealth and its direct and indirect subsidiaries, Cloudbreak Health and TTC Healthcare, respectively, have not filed for Chapter 11 protection and are operating in the normal course of business.

“As we continue to seek a fair resolution of the Needham decision, we determined that placing Thrasys into Chapter 11 is the best course of action to ensure its immediate cash needs are met,” Martin Beck, CEO of UpHealth, said. “Thrasys remains committed to providing service to customers to continue to manage the health of their patients through Thrasys’ comprehensive integrated care technology platform. As we work to restructure our financials and preserve stakeholder value, we continue to focus on our mission of enabling high quality, affordable and accessible healthcare for all.”

Behavioral Health Services, as well as the subsidiaries of Behavioral Health Services, also filed for Chapter 11 protection. As previously disclosed, the company discontinued operations of BHS earlier this year.

Holdings, Thrasys and BHS have filed a motion with the Bankruptcy Court seeking to jointly administer their Chapter 11 cases under the caption In re UpHealth Holdings, Inc., Case No. 23 11476. Holdings, Thrasys and BHS have filed a number of customary first day motions that, once approved, will allow these entities to continue to operate in the normal course of business without interruption to their customers, vendors and employees. The company expects to receive Bankruptcy Court approval for these requests and intends to pay vendors in full for all goods received and services provided after the filing date.

DLA Piper is serving as legal counsel to UpHealth and its subsidiaries.