“Envision Healthcare filed for Chapter 11 bankruptcy Monday morning, ending a yearslong saga,” Aaron Weitzman writes over at Axios, in a major shift for private-equity-based healthcare. “Why it matters: It could be one of the largest health care-related bankruptcy cases ever, the Wall Street Journal reports. Details: Nashville-based Envision estimated assets and liabilities in the range of $1 billion to $10 billion each, the company said in a court filing.
- “Envision entered a restructuring support agreement for debt obligations of about $7.7 billion.
- “Via that restructuring, Envision’s ambulatory surgery unit Amsurg, and its doctor practice Envision Physician Services, will now be separately owned.
- “Envision’s Amsurg unit will buy surgery centers held by the company for $300 million, along with a waiver of intercompany loans held by Amsurg, Envision said in a statement.
- “Aside from a revolving credit facility, Envision’s debt will be canceled, deleveraging the company’s balance sheet by about $5.6 billion, it said.
“Catch up quick: KKR was the fourth private equity firm to own Envision, acquiring the business for $9.9 billion in 2018.” Aaron Weitzman, “Envision files for Chapter 11,” Axios.
