Prison Health Company Wellpath Wins Bankruptcy Exit Approval (2)

Prison health-care company Wellpath Holdings Inc. gained bankruptcy court approval of its plan to resolve hundreds of tort claims despite concerns from some self-represented junior creditors.

Ensuring current and formerly incarcerated people and families of deceased prisoners are aware of the deal was a concern, but Wellpath has done as much as it could to notify them, Judge Alfredo R. Perez of the US Bankruptcy Court for the Southern District of Texas said during a Wednesday hearing. The settlement, which includes $15.5 million in cash for junior creditors, sets up a trust to pay out holders of personal injury and ...