Cano Health filed for Chapter 11 bankruptcy protection Sunday.
In the filing made in the U.S. Bankruptcy Court for the District of Delaware, Cano listed $1.2 billion in assets and $1.4 billion in debt. The largest unsecured creditor is U.S. Bank, owed $306 million.
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The company said it received a commitment for $150 million in debtor-in-possession financing from certain existing secured lenders. The funds, subject to court approval, would support Cano's operations during the restructuring, which could include a sale of the company.
Cano said it expects to emerge from bankruptcy in the second quarter.
In the news release, CEO Mark Kent said the company had “taken decisive actions” to advance its transformation plan and strengthen the company’s financial position. “I am confident we will emerge from this process a stronger organization,” he said.
A spokesperson declined to comment beyond the release.
In December, the company established a committee to oversee day-to-day activities, management and the company’s advisers to explore financing and strategic alternatives.
The Chapter 11 filing was supported by creditors holding approximately 86% of Cano’s secured revolving and term loan debt and approximately 92% of its senior unsecured notes, according to the filing. Cano's two-largest shareholders are private equity firm ITC Rumba, LLC, with 16% of shares, and Chief Operating Officer Robert Camerlinck, with 8.2%.
The bankruptcy filing follows a tumultuous 2023 for the company.
Last spring, Cano faced a public clash with three former directors of its board—Barry Sternlicht, a billionaire real estate investor; Dr. Lewis Gold, co-founder of Sheridan Healthcare; and Elliot Cooperstone, managing partner of InTandem Capital Partners. The trio resigned and called for then-Cano Health CEO Dr. Marlow Hernandez to be removed. Hernandez stepped down in June and Mark Kent was named interim CEO.
Cano separated the roles of CEO and board chairman in April, appointing communications executive Solomon Trujillo as chairman. The membership-based company announced in May it was exploring strategic alternatives for its non-core segment as it reported first-quarter earnings
In August, Cano said its liquidity of $125 million was not enough to cover operating, investing and financing uses for the next 12 months. That same month, Cano Health said it would lay off 700 employees, exit four markets and explore a sale.
