Bankrupt prison health-care company Wellpath Holdings Inc. and its creditors reached a settlement, including $15.5 million in cash, two weeks ahead of its reorganization plan approval hearing.
The deal, which is contingent upon court approval of the plan, would resolve about 1,500 personal injury claims from current and former inmates and families of deceased prisoners. The proposal sets up a liquidating trust to pay out tort claimants and certain other creditors.
“The plan will provide a substantially increased amount available for distribution that will go to the liquidating trust,” Wellpath attorney Felicia Perlman of McDermott Will & Emery LLP said ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.