Bankrupt Prison Health Firm Wellpath Approved to Borrow $362M

Wellpath Holdings Inc, which provides health-care to prisons and jails in the US, won court permission to borrow about $362 million while the company tries to sell itself in bankruptcy.

• At a court hearing Wednesday in Houston, US Bankruptcy Judge Alfredo Perez approved the loan package, which refinances some older debt and injects about $105 million in cash into the company
• Perez also approved rules for an auction to sell the company’s primary businesses; under the rules, a group of Wellpath lenders would submit the initial bid for one of the firm’s divisions

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