UpHealth, a global digital health company delivering technology platforms, infrastructure and services to modernize care delivery and health management, filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 filing follows 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.
“Following the summary judgement, we immediately initiated a comprehensive review of our options, and determined that voluntarily filing for Chapter 11 is necessary to mitigate the financial impact of the trial court’s decision,” Sam Meckey, CEO of UpHealth, said. “We do not expect this announcement to have any impact on our operations or on the work we are doing to deliver technology-enabled services to our customers. We remain confident in the future prospects of our business, and are taking this proactive step so that we may best protect the interests of our stakeholders and achieve a fair resolution of this matter through an appeals process of the Needham judgment.
“We will continue to explore all possibilities while advancing the critical mission of UpHealth. In the meantime, I would like to recognize our dedicated employees, whose continued support and commitment are essential to our ability to continue our important mission and maintain our commitment to our customers and partners.”
UpHealth’s subsidiary, UpHealth Holdings, will be filing a number of customary first day motions that, once approved, will allow the company to continue to operate in the normal course of business without interruption to its customers, vendors and employees. The company expects to receive 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.