Healthcare bankruptcies reached a five-year peak in 2023, and this trend is set to gain momentum. So far this year, more than 15 companies in the sector with liabilities greater than $10 million have commenced Chapter 11 cases.
These companies, which together hold nearly $4 billion in funded debt, include hospitals, pharmaceutical companies, tech, and other medical service providers. As you can see from Debtwire’s data below, notable among them are Invitae Corp, Cano Health, and most recently, Acorda Therapeutics and Eiger BioPharmaceuticals.
The majority of these bankruptcies have come after an attempt by the company to sell some or all of its assets outside of Chapter 11. Many have begun proceedings in ‘free fall’, confronting a financial crisis without a clear path forward or agreement with major creditors or lenders.
As we look to the second quarter and likely the rest of the year, filings are expected to continue in what is shaping up to be another difficult year for healthcare.
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After a busy 2023, bankruptcy filings in the healthcare sector are expected to rise this year, especially among large companies facing huge debt loads.
So far in 2024, more than 15 companies in the healthcare sector with over $10 million in liabilities have commenced Chapter 11 cases. Notable among them are genetics company Invitae Corp, healthcare technology company Cano Health, and most recently, neurology-focused pharmaceutical company Acorda Therapeutics and Eiger BioPharmaceuticals.
The table below shows all Healthcare sector Chapter 11 filings this year through to the 10 April, sourced from Debtwire’s Restructuring Database.
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