Cano Health (NYSE:CANO) stock is plummeting on Monday after the primary care medical services company announced a bankruptcy filing.
Cano Health has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. This comes as it enters into a Restructuring Support Agreement with lenders that hold about 86% of its secured revolving and term loan debt, as well as 92% of its senior unsecured notes.
Cano Health also revealed $150 million in new debtor-in-possession financing from existing lenders. These funds, if approved by the bankruptcy court, will allow it to continue operations as normal throughout the restructuring process.
Cano Health CEO Mark Kent said the following about the bankruptcy filing:
“We have taken decisive actions over the past few months to advance our previously disclosed Transformation Plan and strengthen our financial position. By entering this court-supervised restructuring process, we are positioning the Company to achieve those goals on an accelerated basis and focus on what we do best – improving health outcomes for patients at a lower cost.”
How This Affects CANO Stock
News of the bankruptcy filing and restructuring plan isn’t sitting well with CANO stockholders on Monday. That has more than 159,000 shares already changing hands as of this writing. That’s a strong start and is gaining on its daily average trading volume of about 385,000 shares.
CANO stock is down 51.3% as of Monday morning. The stock was also down 56% year-to-date as of Friday’s close.
Investors looking for more of the most recent stock market stories are in luck!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
