Cano Health, a value-based primary care provider and population health company, entered a global agreement with the unsecured creditors committee representing the interests of the company’s general unsecured creditors, with the support of the ad hoc lender group. It also received approval of its disclosure statement by the U.S. Bankruptcy Court for the District of Delaware, paving the way to solicit creditor approval of its plan of reorganization and its expected emergence from Chapter 11 in Q3/24.
“This is an important milestone, indicating we are nearing completion of our Court-supervised financial restructuring process with broad creditor support,” Mark Kent, CEO of Cano Health, said. “At the same time, we have made significant progress on executing our transformation plan, which is designed to refocus operations on our core Florida market and to enhance profitability and productivity while staying committed to our purpose of improving health outcomes at lower cost. We are firmly on track to reach our targeted $290 million in cost reductions and emerge as a stronger company that is well positioned to compete in the market and continue to provide patients high-quality medical care.”
On February 4, 2024, Cano Health entered into a restructuring support agreement (RSA) with lenders holding approximately 86% of its secured revolving and term loan debt and 92% of its senior unsecured notes and filed prearranged voluntary Chapter 11 proceedings. The RSA provides for the conversion of nearly $1 billion in secured debt into a combination of new debt and equity ownership in the reorganized company.
