CANO - Cano Health: Common Shareholders Likely To Be Wiped Out In Bankruptcy
2024-02-05 23:55:35 ET
Summary
- Ailing primary care medical services provider Cano Health finally succumbed to persistent debt and liquidity issues.
- After successfully negotiating a restructuring support agreement with key lenders, the company filed for chapter 11 bankruptcy in Delaware.
- Under the terms of the agreement, secured creditors will become the new owners of the restructured business, while existing equity holders will be wiped out.
- Even a sale of the business is not likely to result in any sort of recovery for existing shareholders.
- Consequently, existing equity holders should consider selling their shares and moving on, as otherwise, they will likely end up being wiped out.
Six months ago, ailing primary care medical services provider Cano Health, Inc. ( CANO ) or "Cano Health" warned investors of liquidity issues raising substantial doubt about the company’s ability to continue as a going concern....
Cano Health: Common Shareholders Likely To Be Wiped Out In Bankruptcy