Exits Court-Supervised Restructuring Process
with Significantly Deleveraged Balance Sheet and New Financing to
Support Operations
On Track to Achieve $290 million of Annualized Cost Reductions by the
End of 2024
MIAMI, June 28,
2024 /PRNewswire/ -- Cano Health, Inc. ("Cano Health"
or the "Company"), a leading value-based primary care provider and
population health company, announced today it successfully emerged
from Chapter 11 as a reorganized private company with a
significantly improved capital structure and optimized operations
focused on providing quality patient care within the Florida market.
Cano Health's Plan of Reorganization (the "Plan") was confirmed
by the U.S. Bankruptcy Court for the District of Delaware on June 28,
2024 with the support of the Company's key stakeholders,
including its secured and unsecured creditors and key business
partners.
The Company has significantly reduced its debt obligations,
converting more than $1 billion of
prepetition funded debt into a combination of common stock and
warrants. As part of the restructuring, the Company's existing
investors also committed more than $200
million in new capital to support Cano Health's go-forward
business plan.
Over the past nine months, the Company's management team has
taken significant steps to strengthen its operational and financial
performance and position the Company for long-term success. To
date, Cano Health has successfully streamlined the Company's
portfolio of assets, including by exiting underperforming expansion
markets and pruning its medical center portfolio to focus on
specific Florida markets. Cano
Health has achieved over $270 million
in cost reductions and productivity improvements. The Company is
performing favorably against its previously announced CY 2024
$290 million cost reduction
goal.
Mark Kent, CEO of Cano Health,
said, "This has been a transformative year, and the successful
conclusion of our court-supervised restructuring has put Cano
Health in an excellent position for the future. We are moving
forward with incredibly strong physician partnerships and an
improved medical center portfolio. Cano Health has the proper
resources to focus on what matters most – treating our patients
with the same level of care and attention as we would our own
families."
"We are taking a disciplined and strategic approach to our
growth over the next few years, with the primary goal of improving
services for patients within our existing Florida footprint, which now consists of 80
locations. We are already seeing encouraging results across our
improved platform, and I am immensely proud of our associates for
their continued dedication to our patients throughout this process.
Despite the challenges we have faced as an organization, we have
emerged as a stronger and more focused company with a bright
future."
Cano Health is also announcing certain changes to its board. The
Company is pleased to announce that Alan
Wheatley will be joining the board as Executive Chairman.
Mr. Wheatley brings more than 30 years of healthcare experience to
Cano Health, running Medicare and Medicaid programs at Humana for
much of the last 15 years. He has been a leader in innovating,
organizing and operating value-based care relationships for
decades. Mr. Wheatley will work alongside board members
Mark Kent and Eric Hsiao of Nut Tree Capital Management,
LP.
About Cano Health
Cano Health is a high-touch, technology-powered healthcare
company delivering personalized, value-based primary care. Founded
in 2009, with its headquarters in Miami,
Florida, Cano Health is transforming healthcare by
delivering primary care that measurably improves the health,
wellness, and quality of life of its patients and the communities
it serves through its primary care medical centers and supporting
affiliated providers. For more information, visit canohealth.com or
mediarelations@canohealth.com.
Forward Looking Statements
This press release includes "forward-looking statements" which
can be identified by the use of words such as "believes,"
"expects," "intends," "plans," "estimates," "assumes," "may,"
"should," "will," "seeks," or other similar expressions. Such
statements may include, but are not limited to, statements
regarding [the achievement of cost reductions and operational and
financial performance]. These statements are based on current
expectations on the date of this press release and involve a number
of risks and uncertainties that may cause actual results to differ
significantly. The Company does not assume any obligation to update
or revise any such forward-looking statements, whether as the
result of new developments or otherwise. Readers are cautioned not
to put undue reliance on forward-looking statements.
Media contacts
Kekst CNC
Ruth Pachman / Nick Capuano
ruth.pachman@kekstcnc.com / nicholas.capuano@kekstcnc.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cano-health-announces-successful-emergence-from-chapter-11-302186063.html
SOURCE Cano Health, Inc.