Quorum Health Topples Mudrick, Clearing Path to Bankruptcy Exit

Quorum Health Corp. won approval of its plan to exit bankruptcy Monday, prevailing in a prolonged fight with its biggest shareholder, Mudrick Capital Management.

U.S. Bankruptcy Judge Karen Owens said in a hearing Monday she would approve the rural hospital chain’s plan to hand over ownership of the company to creditors including GoldenTree Asset Management LPand Davidson Kempner Capital Management LLCwhile slashing some of its $1.2 billion debt.

Mudrick -- which owns about 15% of Quorum’s shares -- opposed the plan, arguing it was based on a shoddy valuation that unfairly calls for zero recovery to current ...