Kairos Capital Management LP has expressed support to the proposed appointment of a committee to represent equity holders in Quorum Health Corporation’s Chapter 11 case.
In court filings, Kairos said it supports Mudrick Capital Management, L.P.’s request to appoint an equity committee and its objection to confirmation of Quorum Health’s proposed Chapter 11 plan.
The plan, if confirmed by the bankruptcy court, would wipe out existing equity and give ownership of the reorganized company to certain creditors, according to Kairos.
Kairos owns approximately 709,000 shares in Quorum Health.
About Quorum Health Corporation
Headquartered in Brentwood, Tennessee, Quorum Health (NYSE: QHC) is an operator of general acute care hospitals and outpatient services in the United States. Through its subsidiaries, the Company owns, leases or operates a diversified portfolio of 24 affiliated hospitals in rural and mid-sized markets located across 14 states with an aggregate of 1,995 licensed beds. The Company also operates Quorum Health Resources, LLC, a leading hospital management advisory and consulting services business.
Quorum Health incurred net losses attributable to the company of $200.25 million in 2018, $114.2 million in 2017, and $347.7 million in 2016.
As of Sept. 30, 2019, Quorum Health had $1.52 billion in total assets, $1.72 billion in total liabilities, $2.27 million in redeemable non-controlling interest, and a total deficit of $203.36 million.
On April 7, 2020, Quorum Health Corporation and 134 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10766) to seek confirmation of a pre-packaged plan.
Debtors hired McDermott Will & Emery LLP and Wachtell, Lipton, Rosen & Katz as legal counsel, MTS Health Partners, L.P. as financial advisor, and Alvarez & Marsal North America, LLC. as restructuring advisor. Epiq Corporate Restructuring, LLC, is the claims agent, maintaining the Web site https://dm.epiq11.com/Quorum