Prison Medical Provider Lands $75 Million Bankruptcy Deal (1)

Prison healthcare provider Tehum Care Services Inc. agreed to a $75 million settlement with creditors, including personal injury claimants, moving it closer toward resolving its bankruptcy.

The agreement, announced Wednesday, would distribute the money through a Chapter 11 plan. Tehum, owned by Corizon Health Inc., is attempting to use a controversial legal maneuver called the Texas Two-Step to resolve more than 200 current and former prisoners’ medical malpractice claims in bankruptcy.

The deal increases the settlement funds from $54 million under a prior deal.

“We applaud the efforts of the parties to reach a settlement, which includes increased monies for ...