Cano Health Wants Out Of About 80 Leases In Bankruptcy
Cano Health, which filed for Chapter 11 reorganization on Sunday, has asked the bankruptcy court to reject leases associated with about 80 of its underperforming locations nationwide as part of its reorganization.
“The Debtors have continued to review their portfolio and have closed or are in the process of closing approximately 80 under-performing locations that are not core to their go forward business since September 2023,” CEO Mark Kent said in a sworn declaration.
The filing was made with the U.S. Bankruptcy Court for the District of Delaware.
“The Debtors will seek to reject the leases associated with such locations as part of the chapter 11 cases,” Kent said.
Most of the locations are in South Florida, though there are locations in other parts of the state, along with California, Texas and Illinois, CoStar reports. The rejection of the leases is part of the overall strategy that would see Cano reduce costs by about $290M by the end of this year, according to court documents.
Cano is a physician group with 300 doctors and other healthcare professionals on staff, as well as 2,800 other full-time employees. The Miami-based company, which entered bankruptcy with about $1.2B in debt, says it has secured $150M in financing to take it through the bankruptcy process.
Jaws Acquisition Corp., a special-purpose acquisition company backed by real estate investment mogul Barry Sternlicht, took Cano public in 2020 in a transaction that valued it at $4.4B.
Cano isn't alone in the healthcare space in its financial woes. Steward Health Care is beset by losses, and landlord Medical Properties Trust has loaned it $60M to stay afloat. In January, Steward hired a restructuring specialist to help deal with its losses.