Cano Health Approved to Exit Bankruptcy Under Control of Lenders

Cano Health Inc., one of the biggest independent primary-care providers in the US, won court approval to hand ownership to creditors in exchange for reducing debt by about $1 billion.

At a court hearing Friday morning, US Bankruptcy Judge Karen Owens gave the company permission to implement a reorganization plan backed by lenders including Nut Tree Capital Management, Carlyle Investment Managementand Squarepoint Ops. Those investors were among a group that negotiated a bankruptcy deal with Cano to slash debt and lend the company fresh cash in exchange for equity stakes.

Under the reorganization proposal, first-lien lenders ...