Cano Health emerges from bankruptcy, achieves $270M in cost reductions
Cano Health announced it has emerged from bankruptcy as a “reorganized private company with a significantly improved capital structure and optimized operations,” after approval from a court on June 28.
Cano Health provides primary care service to patients in Florida, and its bankruptcy was triggered by heavy debts and rising operation costs. The company filed for bankruptcy in February.
In its announcement, Cano Health said it has reduced its debts and converted more than $1 billion into stock and other securities to entice investors. The company also said it’s been provided $200 million in funding from existing investors to aid in its reorganization.
"This has been a transformative year, and the successful conclusion of our court-supervised restructuring has put Cano Health in an excellent position for the future," Mark Kent, CEO of Cano Health, said in the statement. "We are moving forward with incredibly strong physician partnerships and an improved medical center portfolio."
As part of its restructuring, Cano Health has streamlined its business and removed itself from markets where it was underperforming by selling off medical centers, the company said.
Over the past few years, Cano Health has received heavy investments and loans from private equity firms. In 2021, it became a public company, traded on the New York Stock Exchange.
In 2023, Cano Health received a $150 million loan from Diameter Capital Partners and Rubicon Founders to cover its debts and expenses. Before filing for bankruptcy in February, the company was already reorganizing to slim down its business.
To date, the newly private company has been able to find more than $270 million in cost reductions and improvements through adjustments in its asset portfolio. Cano Health said it's aiming to reduce its costs by a total of $290 million before the end of the year.
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