Carbon Health Seeks Lender Sale Approval as Bankruptcy Backup

Health-care chain Carbon Health Technologies sought court approval of a $100 million credit bid for its assets, which will serve as a backup option if its contested reorganization plan doesn’t move forward.

Carbon Health seeks to lock in a sale to lender Future Solution Investments LLC if its proposed bankruptcy plan is rejected or withdrawn, warning that escalating litigation from its unsecured creditors’ committee could drive up legal costs and force a shift to liquidation. The motion was filed Wednesday in the US Bankruptcy Court for the Southern District of Texas.

The California-based chain of primary health care and urgent ...