We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
THE US DRUG REHABILITATION CENTERS FILE FOR THE BANKRUPTCY PROTECTION
AAC Holdings Inc., the parent company of a network of American drug treatment centers located in Brentwood, Tennessee, USA, filed a lawsuit for the bankruptcy protection. The company suggests that after carrying out the necessary legal procedures, it will be possible to get out of bankruptcy in 125 days. According to the information from open sources, the debt is $ 517.4 million, while the company's assets are estimated at $ 449.3 million.
According to the company’s statement, $ 62.5 million was allocated to support the ongoing debt restructuring operations. According to the press service, the recapitalization plan does not involve any layoffs or closure of rehabilitation centers operated by the company. All the activities related to the treatment of drug addicts will be continued as usual, and the centers will provide the necessary assistance to the patients. It is also planned that employees will not be impaired in receiving salaries and social benefits defined by the US law.
It is known that AAC currently operates a chain of rehabilitation centers in seven states: California, Florida, Texas, Nevada, Mississippi, New Jersey and Rhode Island.
Recently, the company has been struggling with the debt burden, but it is not possible to cope with it on its own. The experts call the financial borrowing made by the company’s management to acquire AdCare two years ago a reason of the main debt.
We should recall that AdCare is one of the leading drug addiction treatment organizations. Each year, it serves about 8 thousand patients as part of inpatient treatment. AdCare's services include a 114 bed hospital for substance abuse treatment, along with detoxification and rehabilitation services, as well as five outpatient centers in Massachusetts, a 59-bed treatment center and two outpatient centers in Rhode Island. The company bought a nationwide telephone line 1-800-ALCOHOL ™, generating about 50 thousand calls annually. The acquisition in March 2018 cost the company $ 85 million.
Last year, AAC failed to fulfill its debt obligations, as a result of which the management had to conclude a special agreement with the creditors.
Now, in the event of a successful trial by the Delaware County Court, the company will have to restructure its debt and get out of the bankruptcy.
