Prison Health Unit Seeks to Stop Bankruptcy Settlement Default

Prison health-care company YesCare Corp. asked a federal court to maintain protections against thousands of prisoner injury and wrongful death suits it won during the bankruptcy of former affiliate Tehum Care Services Inc. after missing months of settlement payments.

In an emergency motion filed Thursday in the US Bankruptcy Court for the Southern District of Texas, YesCare said it paid $200,000 as part of a forbearance agreement to pause default actions by creditor trusts, despite missing $7.5 million in settlement payments to the trusts.

Terminating the protections would undermine a carefully negotiated bankruptcy plan, expose those involved in the Tehum ...