KKR’s Envision Files for Bankruptcy to Cut $5.6 Billion Debt (1)

KKR’s Envision Healthcare Corp. filed for Chapter 11 bankruptcy protection after its performance deteriorated and talks with creditors failed.

The medical staffing company filed in the Southern District of Texas as it looks to swap $5.6 billion of bonds and loans into equity, the company said in a statement. That excludes the firm’s revolving credit facility for working capital, it said.

The Chapter 11 filing marks a bruising outcome for Envision, which raised more than $1 billion in fresh cash just last year. Many creditors were riled by the rescue financing, which involved moving a valuable ambulance surgery business ...