Filing Alert: The Villages Health Chapter 11
The Villages Health Files Chapter 11 in Middle District of Florida
The Villages Health System, LLC (dba The Villages Health), a Florida-based operator of primary and specialty care clinics serving residents of The Villages and surrounding communities, filed for Chapter 11 protection on Jul. 3 in the U.S. Bankruptcy Court for the Middle District of Florida.
The filing is intended to facilitate a sale of substantially all assets under section 363 to stalking horse bidder CenterWell Senior Primary Care (Vitality), Inc., following the company’s discovery and self-disclosure of significant historical Medicare (HCC) billing and coding issues. These issues could give rise to potential overpayment liabilities exceeding $350 million, which ultimately led to the suspension of a previously negotiated stock purchase agreement with CenterWell earlier this year and necessitated an in-court sale process.
The Villages Health’s prepetition capital structure includes a $15 million secured facility from PMA Lender LLC, which has also committed up to $24 million in DIP financing to support the Chapter 11 proceedings and sale efforts.
The company reports $50 million to $100 million in assets and $100 million to $500 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-04156.
Top Unsecured Claims
Key Parties
Counsel:
- Elizabeth A. Green
- Baker & Hostetler LLP
- Email: egreen@bakerlaw.com
Financial Advisor / CRO:
- GBH SOLIC Holdco, LLC (formerly SOLIC Capital Advisors), Neil F. Luria
Equity Security Holders:
- Villages Health Holding Company – 66.3% Equity Interest
- E.J. Sussman, Inc. – 8% Equity Interest
- The Villages Health System – 5.8% Equity Interest
- Other Minority Holders – 19.9% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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