Emergence from Chapter 11 Expected in Third
Quarter of 2024
MIAMI, May 21, 2024
/PRNewswire/ -- Cano Health, Inc. (NYSE: CANO) ("Cano
Health" or the "Company"), a leading value-based primary care
provider and population health company, today announced a global
agreement with the Unsecured Creditors Committee representing the
interests of the Company's general unsecured creditors, with the
support of the Ad Hoc Lender Group. It also received approval of
its Disclosure Statement by the U.S. Bankruptcy Court for the
District of Delaware (the
"Court"), paving the way to solicit creditor approval of its Plan
of Reorganization and its expected emergence from Chapter 11 in the
third quarter.
Mark Kent, CEO of Cano Health,
said, "This is an important milestone, indicating we are nearing
completion of our Court-supervised financial restructuring process
with broad creditor support. At the same time, we have made
significant progress on executing our Transformation Plan, which is
designed to refocus operations on our core Florida market and to enhance profitability
and productivity while staying committed to our purpose of
improving health outcomes at lower cost."
"We are firmly on track to reach our targeted $290 million in cost reductions and emerge as a
stronger company that is well positioned to compete in the market
and continue to provide patients high-quality medical care," Kent
concluded.
On February 4, 2024, Cano Health
entered into a Restructuring Support Agreement (the "RSA")
with lenders (the "Ad Hoc Lender Group") holding approximately
86% of its secured revolving and term loan debt and 92% of its
senior unsecured notes and filed prearranged voluntary Chapter 11
proceedings. The RSA provides for the conversion of nearly $1
billion in secured debt into a combination of new debt and
equity ownership in the reorganized company.
Additional information about Cano Health's restructuring
proceedings is available at
https://www.kccllc.net/CanoHealth. Creditors with questions
may contact the Company's Claims Agent, Kurtzman Carson Consultants
LLC, at CanoHealthinfo@kccllc.com and (888)
251-2679 (U.S./Canada) or (310)
751-2609 (International).
About Cano Health
Cano Health (NYSE: CANO) is a high-touch,
technology-powered healthcare company delivering personalized,
value-based primary care to approximately 310,000 members. 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 contains forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act. Forward-looking statements relate to future
events and involve known and unknown risks, uncertainties and other
factors which are, in some cases, beyond our control and could
materially affect actual results, performance or achievements.
These forward-looking statements generally can be identified by
words such as "will," "shall," "may," "anticipates," "forecasts,"
"plans," "assumes," "expects," "seeks," or other words or phrases
of similar import. Such statements include, without limitation,
statements regarding: (i) that certain Restructuring Support
Agreement between the Company, certain of its direct and indirect
subsidiaries and the lenders party thereto, dated as of
February 4, 2024 (the "RSA"), the
transactions contemplated thereby, and the expected benefits
thereof, including that it will enable the Company to substantially
reduce its debt and position the Company to achieve long-term
success and maximize value; (ii) the Company's Chapter 11 Cases,
including, without limitation, the Amended Plan and Disclosure
Statement, the outcome of the Chapter 11 Cases, and the Company's
expectations as to receipt of and timing for the Bankruptcy Court
approvals and the timing of its emergence from the proceedings, as
well as the expected benefits of the proceedings, such as that they
will strengthen the Company's financial condition, position the
Company to advance its ongoing transformation plan that is designed
to significantly reduce costs, enhance productivity, and improve
cash flow, ensure patients continue to receive high-quality care
across medical centers and improve health outcomes for patients at
a lower cost, including the benefits from such activities,
including our expectations regarding achieving approximately
$290 million of cost reductions by
the end of 2024, including approximately $105 million in initiatives currently in process
or already implemented (the "Transformation Plan"); (iii) the
availability of liquidity from the Company's debtor-in-possession
financing, including the Senior Secured Superpriority
Debtor-in-Possession Credit Agreement, dated as of February 7, 2024, and the various conditions to
which such debtor-in-possession financing is subject and the risk
that these conditions may not be satisfied for various reasons,
including for reasons outside of the Company's control, as well as
the Company's planned uses of such funds, including, without
limitation that the new capital will provide sufficient liquidity
to support the Company's ongoing operations throughout the
restructuring process; (iv) the Company's execution of one or more
aspects of the Transformation Plan; and (v) the Company's
anticipated performance, operations, financial strength, potential,
and prospects for long-term shareholder value creation, anticipated
results of operations, including our business strategies, our
projected costs, prospects and plans, and other aspects of our
operations or operating results. It is uncertain whether any of the
events anticipated by the forward-looking statements will occur,
or, if any of them do, what impact they will have on our results of
operations and financial condition. Important risks and
uncertainties that could cause our actual results and financial
condition to differ materially from those indicated in
forward-looking statements include, among others; changes in market
or industry conditions, the regulatory environment, competitive
conditions, and/or consumer receptivity to our services; changes in
our strategy, future operations, prospects and plans; our ability
to realize expected financial results, including with respect to
patient membership, total revenue and earnings; our ability to
predict and control our medical cost ratio; our ability to maintain
our relationships with health plans and other key payors; our
future capital requirements and sources and uses of cash, including
funds to satisfy our liquidity needs; our ability to attract and
retain members of management and our Board of Directors; and/or our
ability to recruit and retain qualified team members and
independent physicians. Actual results may also differ materially
from such forward-looking statements for a number of other reasons,
including those set forth in our filings with the SEC, including,
without limitation, in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2023,
filed with the SEC on April 1, 2024
(the "2023 Form 10-K"), as well as our Quarterly Reports on Form
10-Q and Current Reports on Form 8-K that we have filed or will
file with the SEC during 2023 and 2024 (which may be viewed on the
SEC's website at http://www.sec.gov or on our website at
http://www.investors.canohealth.com/ir-home), as well as reasons
including, without limitation, our experiencing delays or
difficulties in, and/or unexpected or less than anticipated results
from: (i) our efforts to successfully pursue the Chapter 11 Cases;
(ii) less than expected benefits from the RSA; (iii) less than
expected access to liquidity and greater than anticipated costs and
expenses; and/or (iv) less than expected cost reductions and/or any
of the other expected benefits from the Transformation Plan, such
as due to higher than expected costs and charges to achieve one or
more aspects of such plan or delays in achieving such benefits. For
a detailed discussion of other risks and uncertainties that could
cause our actual results to differ materially from those expressed
or implied by the forward-looking statements, please refer to our
filings with the SEC, including, without limitation, our 2023 Form
10-K and our other SEC filings noted above. Factors other than
those listed above could also cause our results to differ
materially from expected results. Forward-looking statements speak
only as of the date they are made and, except as required by law,
we undertake no obligation or duty to publicly update or revise any
forward-looking statement, whether to reflect actual results of
operations; changes in financial condition; changes in general U.S.
or international economic, industry conditions; changes in
estimates, expectations or assumptions; or other circumstances,
conditions, developments or events arising after the issuance of
this press release. Additionally, the business and financial
materials and any other statement or disclosure on or made
available through the Company's websites or other websites
referenced herein shall not be incorporated by reference into this
press release.
Contact:
mediarelations@canohealth.com
Kekstaquarius@kekstcnc.com
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SOURCE Cano Health, Inc.