Prison Health Firm Approved to Solicit Votes on Bankruptcy Plan

Troubled prison health-care provider Wellpath Holdings Inc. secured court approval to begin polling creditors, including inmates with personal injury claims against the company, on its restructuring proposal, pending revisions.

The Friday ruling is a step forward for Wellpath as it works on a bankruptcy plan to resolve funded debt issues and about 1,500 tort claims from current and former incarcerated people and families of deceased prisoners.

“To some extent, the speed of the case informs what the debtor can do and accomplish,” Judge Alfredo R. Perez of the US Bankruptcy Court for the Southern District of Texas said. Revisions are ...