A Nashville-based healthcare services company that focuses on treating incarcerated inmates filed for Chapter 11 bankruptcy protection in Houston Monday, claiming more than $1 billion in liabilities and an equal amount in assets.
Wellpath Holdings and about 40 of its affiliated companies, which served about 3,000 in 2023 and reported revenues of $425 million, filed for bankruptcy in the Southern District of Texas. The case has been assigned to Judge Alfredo Perez.
McDermott is the lead legal advisor for Wellpath. McDermott partner Marcus Helt of Dallas signed the first day pleadings.
Wellpath selected FTI Consulting as its financial advisor in the restructuring and lists Lazard Frères as its investment bank.
Wellpath states that it has restructuring approval of 85 percent of the first-lien holders and 80 percent of the second-lien holders. The ad hoc group of lenders, which includes WhiteStar Asset Management and Trinitas Capital Management — both Dallas-based — are represented by Akin Gump and partner Marty Brimmage in Dallas.
The case is In re Wellpath Holdings, No. 24-90533.