Cancer treatment provider GenesisCare filed for Chapter 11 bankruptcy protection in the Southern District of Texas on Thursday and looks to sell its underperforming U.S. operations.
Sydney, Australia-based GenesisCare said in a news release it is restructuring the business, including $1.7 billion in debt, to separate U.S. operations from those in Australia, Spain and the U.K.
The company, which has more than 300 locations worldwide and more than 5,500 physicians and support staff, plans to use $200 million in financing from existing lenders to operate the business.
GenesisCare, backed by private-equity firm KKR and China Resources Capital, entered the U.S. in 2020 when it acquired 21st Century Oncology, which provides cancer care, urology and other services. 21st Century had struggled for years and previously filed for bankruptcy in 2017. Since GenesisCare took over, it has worked to improve revenue cycle management, payer contracting and IT systems—efforts the company said are "beginning to yield results."
A GenesisCare spokesperson said if a sale doesn't take place, the company could also spin off the U.S. operations to a third-party capital provider.