Carbon Health Navigates Financial Restructuring for Future Growth and Stability

Carbon Health: Pioneering Restructuring for a Sustainable Future

In a strategic move aimed at solidifying its financial foundation, Carbon Health Technologies, Inc., a leading technology-enabled healthcare provider, has announced its decision to undergo a comprehensive restructuring process under Chapter 11 of the U.S. Bankruptcy Code. This initiative is designed to establish a pathway towards recapitalization while ensuring uninterrupted care for its patients.

A Clear Roadmap for Restructuring

Carbon Health has reached a collaborative agreement with its existing lenders that allows it to pursue a dual approach: confirming a Chapter 11 plan that emphasizes a debt-for-equity exchange while also marketing and selling certain assets of the company. This structured plan is intended to maximize the value of the organization while preserving flexibility to adapt as necessary during the transition.

To implement this comprehensive restructuring process, voluntary petitions for reorganization were filed in the Southern District of Texas. CEO Kerem Ozkay expressed optimism about these decisive actions to bolster the company's operations, stating, "These steps will fortify our financial foundation and enable us to further our mission of making quality healthcare accessible to all."

Continued Commitment to Patient Care

Despite undergoing this financial restructuring, Carbon Health assures patients and stakeholders that operations will continue without interruption. The company is committed to providing the same high level of care that its patients have come to expect. According to Ozkay, "It will be business as usual while we navigate through this restructuring. Our patients should experience no disruption to their care; they will continue to receive urgent and primary care services both in-person and virtually."

The forward-thinking company has received up to $19.5 million in debtor-in-possession (DIP) financing from Future Solutions Investments. This financing is critical, as it enables Carbon Health to maintain sufficient liquidity throughout the restructuring process, ensuring that employee salaries, vendor payments, and patient services are not disrupted.

Strategic Growth in Response to Market Challenges

The decision to restructure comes as Carbon Health faced increased pressure on its balance sheet, exacerbated by a shifting demand landscape in the post-pandemic era and tightening capital markets across the healthcare sector. In anticipation of such challenges, Carbon Health had already been implementing several cost-reduction initiatives and focusing on simplifying its operations. The restructuring process is expected to allow them to right-size their capital structure adequately and emerge as a more resilient organization poised for sustainable growth.

"Over the past year, we've made significant strides by narrowing our focus and enhancing financial discipline. We believe this Chapter 11 process will allow us to adapt effectively and continue delivering top-notch healthcare solutions," Ozkay remarked.

Transparency and Access Throughout the Process

In alignment with its commitment to patient care, Carbon Health has filed a series of motions to maintain ordinary business operations. This includes fulfilling obligations to employees and ensuring timely payments to vendors and suppliers. The company emphasizes that customer access to its healthcare software will remain steady, providing the same reliable service and support its users expect.

Moreover, patients will retain full access to their medical records and secure health information as the company transitions towards new ownership. Carbon Health's integrated care model aims to leverage technology to enhance the patient experience, making healthcare more accessible and manageable.

In conclusion, Carbon Health's restructuring initiative not only represents a financial recalibration but also reinforces its commitment to innovation in healthcare delivery. As they move through this pivotal period, Carbon Health continues to focus on fulfilling their mission of providing accessible, high-quality healthcare to all.

For ongoing updates regarding the restructuring and operations, interested parties may visit Carbon Health's dedicated restructuring webpage.