What You Should Know
- The Filing: Carbon Health, a major player in the hybrid healthcare space, has filed for Chapter 11 bankruptcy in Texas. This is a strategic move to restructure its debt and find new ownership.
- The Strategy: The company is pursuing a “dual-track” process: it will simultaneously attempt to swap its current debt for equity (handing the keys to lenders) and market the company for a potential sale to a third party.
- The Operations: Despite the legal turmoil, the company has secured $19.5M in new financing to keep the lights on. CEO Kerem Ozkay emphasizes that for patients and software customers, it remains “business as usual.”
The “Dual-Track” Exit Strategy
Carbon Health is not just handing over the keys; it is running a competitive process to maximize value. The restructuring agreement with lenders establishes two parallel paths:
- Debt-for-Equity Swap: A reorganization plan where existing lenders forgive debt in exchange for ownership of the reorganized company.
- Asset Sale: A marketing process to sell all or a portion of the company’s assets to a new buyer.
Whichever path yields the highest value will be the route taken. This structure allows the company to shed the financial weight of its rapid expansion while preserving flexibility.
“The decisive actions we are taking today will strengthen our financial foundation and better position Carbon Health to advance our mission,” said Kerem Ozkay, CEO of Carbon Health.
The $19.5 Million Lifeline
To ensure operations don’t seize up during court proceedings, Carbon Health has secured $19.5M in Debtor-in-Possession (DIP) financing from Future Solutions Investments. This liquidity is critical. It ensures that employees, providers, and vendors continue to get paid. For the tech ecosystem surrounding Carbon, the company explicitly stated that customers using its healthcare software can expect “the same level of reliability, service, and support.”
Clinics to Remain Open
For the average patient, “bankruptcy” usually signals closure. However, Carbon Health is aggressively messaging that clinics remain open.
“It will be business as usual while we complete the restructuring and sale,” Ozkay added. The company confirmed that virtual visits, in-person clinics, and medical record access will continue without interruption.
