By Colin Kellaher
Shares of Cano Health plunged more than 50% in premarket trading Monday after the operator of primary-care medical centers said it filed for chapter 11 bankruptcy as part of an agreement with its lenders to pare its debt load.
Cano late Sunday said it struck a restructuring support agreement with lenders holding about 86% of its secured revolving and term-loan debt and 92% of its senior unsecured notes that will allow the Miami company to substantially reduce its debt.
Cano said it has initiated prearranged, voluntary chapter 11 bankruptcy proceedings to facilitate the restructuring, adding that some of its lenders will provide $150 million in debtor-in-possession financing to support its operations through the restructuring process.
Cano shares, which closed Friday at $2.30, were recently down 52% to $1.11 in premarket trading.
Shareholders are generally wiped out in bankruptcy cases.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 05, 2024 05:54 ET (10:54 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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