Adeptus Health, Inc. (OTC Pink: ADPTQ) is the largest operator of freestanding emergency rooms across the United States. Shares of the healthcare provider are rallying 5.77%, through early trading on Friday, September 29, 2017. Over the past month, Adeptus Health, Inc. has seen average daily volume of 88,712 shares. However, volume of 26,847 shares or dollar volume of $29,531, has already exchanged hands on the day.
Adeptus Health, Inc. is gaining today, after the company announced that the U.S. Bankruptcy Court for the Northern District of Texas has confirmed the company’s Plans for Reorganization. The reorganized company will be owned by affiliates of Deerfield Management Company. Here is the full press release detailing of the court plans:
Adeptus Health, Inc. Press Release:
LEWISVILLE, Texas, Sept. 27, 2017 /PRNewswire/ — Adeptus Health, Inc. (OTC: ADPTQ) (the “Company”), the largest operator of freestanding emergency rooms in the United States, today announced that the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Court”) has confirmed the Company’s plan of reorganization (the “Chapter 11 Plan”). The Company expects to complete its financial restructuring process and emerge from Chapter 11 in the coming days, after the conditions to the Chapter 11 Plan are satisfied.
As previously announced, upon effectiveness of the Chapter 11 Plan, reorganized Adeptus will be owned by affiliates of Deerfield Management Company (“Deerfield”), a long-term investor in Adeptus. The restructuring under the Chapter 11 plan is expected to improve the financial flexibility and operational structure of the business, while better positioning reorganized Adeptus for long-term success.
“The Court’s approval of our Chapter 11 Plan paves the way for us to complete this financial restructuring process and emerge as an even stronger business,” said Gregory W. Scott, Chairman and Interim Chief Executive Officer of Adeptus. “Adeptus will emerge from this process with the financial flexibility and operational support necessary to continue our mission of providing the highest quality medical care to the communities we serve.”
Mr. Scott continued, “Importantly, the court’s decision is a testament to the hard work of Adeptus team members who remained focused on our patients, operating as usual throughout this process. We thank our employees, partners and physicians for their support and look forward to continuing to work together to provide access to much needed emergency medical care.”
All of Adeptus Health’s owned and joint-venture freestanding emergency rooms have and will continue to operate with their usual high standards of quality care.
Upon effectiveness of the Chapter 11 Plan, Adeptus Health Inc. will no longer be a publicly-held company, all shares of its Class A common stock will be cancelled, and it will be dissolved as a corporate entity.
Additional information can be accessed by visiting Adeptus Health’s website at www.adhc.com/restructuring or calling Adeptus Health’s Restructuring Hotline, toll-free in the U.S., at (844) 469-3932. Court filings and other documents related to the court-supervised proceedings are available at a website administered by the Company’s claims agent, Epiq Systems, at http://dm.epiq11.com/ADPT.
Norton Rose Fulbright US LLP is serving as reorganization counsel to Adeptus, and FTI Consulting is serving as financial advisor.
About Adeptus Health
Adeptus Health is a leading patient-centered healthcare organization expanding access to the highest quality emergency medical care through its network of freestanding emergency rooms and partnerships with premier healthcare providers. For more information, please visit www.adpt.com.
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Any forward-looking statements herein are made as of the date of this filing, and the Company undertakes no duty to update or revise any such statements except as required by the federal securities laws. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”) from time to time and which are accessible on the SEC’s website at www.sec.gov, including in the section entitled “Risk Factors” in the Company’s Form 10-K for the fiscal year ended December 31, 2015 and its Form 10-Q for the three and nine months ended September 30, 2016. Among the factors that could cause future results to differ materially from those provided in this release are: (i) the ability of the Company and its subsidiaries to consummate the transactions contemplated by its Chapter 11 Plan, (ii) the potential adverse effects of the Chapter 11 Cases on the Company’s liquidity or results of operations, (iii) the ability to operate the Company’s business and consummate the transactions contemplated by the Chapter 11 Plan, (iv) the transactions contemplated by the DIP financing and the Chapter 11 Plan being subject to closing conditions, which conditions may not be satisfied for various reasons, including for reasons outside of the Company’s control; (v) increased legal costs to execute the Company’s reorganization, and other risks and uncertainties, (vi) the Company’s ability to maintain contracts, trade credit and other customer, joint venture partner and/or vendor relationships that are essential to the Company’s operations, (vii) the Company’s ability to retain key executives and employees, and (viii) the factors discussed in the section entitled “Risk Factors” in the Company’s Form 10-K for the fiscal year ended December 31, 2015 and its Form 10-Q for the three and nine months ended September 30, 2016.
The Company’s stockholders are cautioned that trading in shares of the Company’s Class A common stock during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for shares of the Company’s Class A common stock may bear little or no relationship to the actual recovery, if any, by holders in the reorganization. Accordingly, the Company urges extreme caution with respect to existing and future investments in its Class A common stock. Upon effectiveness of the Chapter 11 Plan, the Company will no longer be a publicly-held company, all shares of the Company’s Class A common stock will be cancelled, and the Company will be dissolved as a corporate entity.