Carbon Health Emerges from Bankruptcy with AI-Focused Turnaround Plan

The firm is pleased to share that Carbon Health Technologies Inc. has successfully emerged from chapter 11 bankruptcy following court confirmation of its plan of reorganization by Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas. The firm, led by Debra Grassgreen, working with John Lucas and Mix Litvak, represented Carbon Health, a California-based primary and urgent care provider chain operating more than 90 clinics across eight states.

 The confirmed plan provides for approximately $33 million in new capital and a $100 million debt-for-equity exchange, transferring majority ownership to a lender group led by Future Solution Investments (FSI) LLC, a Wyoming-based private investment fund. FSI has expressed its intention to transform Carbon Health into an AI-driven healthcare system delivering affordable healthcare nationwide. “We really actually appreciate FSI’s support for this case and I think they have some big ideas for this company, not just on the delivery of healthcare, but using some really interesting tools,” Debra told Bloomberg Law. “We’ll all keep an eye out and hope that it can be a game-changer in the future.”

The plan also establishes a $12 million trust for unsecured creditors, including $4.55 million for commercial creditors and $7.45 million for abuse claimants, resolving all outstanding objections prior to the confirmation hearing.

Thank you to everyone at the firm who contributed to this exceptional result.

To view Bloomberg Law’s coverage of the confirmation, click below (subscription required).