On June 29, U.S. Bankruptcy Judge Karen Owens stated she would authorize the Chapter 11 restructuring strategy and permit Quorum to turn over ownership of the business to financial institutions while slashing a few of its financial obligations, according to Bloomberg Law. The judge stated Quorums restructuring plan is “the very best and just actionable proposal offered” to allow the company to leave personal bankruptcy..
Brentwood, Tenn.-based Quorum Health has a path to exit personal bankruptcy after a Delaware judge approved the companys $1.3 billion restructuring strategy June 29, according to Law360..
Mudrick Capital Management, which owns approximately 15 percent of Quorums shares, challenged the sped up timeline in April. Mudrick argued Quorums effort to expedite its personal bankruptcy plan during the COVID-19 pandemic would prevent shareholders from thoroughly evaluating their treatment under the medical facility operators restructuring strategy. Mudrick likewise argued that Quorums legal representatives obscured the amount of moneying the company got under the Coronavirus Aid, Relief and Economic Security Act, according to Bloomberg Law..
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Quorum, a spinoff of Franklin, Tenn.-based Community Health Systems, applied for Chapter 11 bankruptcy in early April. The business said the personal bankruptcy filing belongs to a plan to recapitalize the service and lower its financial obligation by about $500 million. The for-profit company asked the court to accelerate approval of its restructuring plan..
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