NASHVILLE, Tenn.–(BUSINESS WIRE)–Wellpath and certain of its affiliates (“Wellpath” or the “Company”), the nation’s leader in providing compassionate medical healthcare to vulnerable patients in challenging clinical environments, announced today that it has reached a global settlement with the Statutory Unsecured Claimholders’ Committee (the “Committee” or “UCC”) and its Ad Hoc Lender Group on a consensual Plan of Reorganization (the “Plan”).
Following productive engagement with the Ad Hoc Lender Group and the Committee, Wellpath will file an amended Plan consistent with the global settlement. The agreement and amended Plan resolve the Committee’s opposition to the Plan and pending settlement between Wellpath and its existing financial sponsor. Accordingly, the Committee is now encouraging all general unsecured creditors to vote in favor of the amended plan ahead of the April 22, 2025 voting deadline.
“We have worked extensively alongside our lenders and the Committee to develop a Plan that provides the best outcome for all stakeholders,” said Ben Slocum, Chief Executive Officer of Wellpath. “We are grateful to the parties for their cooperation, which has allowed us to reach this milestone and move forward. We are nearing the finish line and look forward to emerging from this process in the best position possible to fulfill our mission. As we take these final steps, we will continue prioritizing our clients and patients, as we meet our obligations to our partners and continue to put patient care first.”
The settlement clears the path for Wellpath’s amended Plan to be heard by the Court at the Confirmation Hearing on April 30, 2025, supported by the Company’s major stakeholders.
Upon confirmation and effectiveness of the plan, Wellpath will formally complete its Chapter 11 process with a strengthened financial foundation and significantly less debt, which will position the Company for long-term success.
McDermott Will & Emery is Wellpath’s legal counsel, Lazard and MTS Health Partners are its investment bankers, and FTI Consulting is its restructuring advisor.
