YesCare Applauds Agreement with Creditors in Tehum Care (formerly Corizon) Bankruptcy Proceedings
17 July 2024 - 11:00PM
Business Wire
YesCare, a leader in correctional healthcare, is pleased that a
comprehensive settlement agreement has been reached with the
creditors of Tehum Care Services, Inc., formerly known as Corizon,
marking a significant milestone in Tehum's ongoing bankruptcy
proceedings. The agreement represents a crucial step toward the
company's long-term goals.
The settlement, reached after extensive negotiations with both
creditors’ committees, demonstrates the parties’ commitment to
working collaboratively towards a resolution for the benefit of all
creditors. YesCare recognizes the hard work of Judge Christopher
Sontchi (ret.), former Chief Judge of the United States Bankruptcy
Court for the District of Delaware, who brought the parties and
their counsel together, including the law firms of Brown Rudnick
LLP and Berry Riddell LLC, which represent the Tort Claimants’
Committee, Stinson LLP, which represents the Unsecured Creditors’
Committee, and Gray Reed, which represents Tehum.
Under the terms of the agreement, approximately $75 million
dollars will be distributed to Tehum’s creditors through a
consensual chapter 11 plan settlement.
Jeff Sholey, CEO of YesCare, stated, "We are grateful for the
support and cooperation of the creditor committees during this
challenging period. This agreement not only underscores our
confidence in YesCare’s business model and prospects but also
allows us to move forward with renewed focus and stability.”
Our priority remains to deliver the value healthcare to our
hundreds of thousands of patients around the country, our thousands
of employees, and stakeholders."
The settlement is expected to be voted on by claimants and
approved by the bankruptcy court through a plan of reorganization
in the coming months. Under the terms of the proposed settlement,
YesCare and other settling parties would receive a release of
estate claims. Once approved, it will enable YesCare and its
affiliate companies to implement new business strategies, invest in
growth initiatives, and serve our partner clients' best
interests.
Jimmy Sprouse, CFO of YesCare, added, "This agreement provides a
clear path forward and ensures that we can continue to operate
effectively while addressing our financial obligations. We believe
this settlement will position us for sustained growth."
YesCare also extends its sincere appreciation to its employees,
partner clients, and all stakeholders for their ongoing support
throughout this process. The company remains committed to
maintaining transparent communication and will provide further
updates as the settlement progresses.
About YesCare
YesCare is an industry leader providing comprehensive healthcare
and reentry services to incarcerated individuals. For more than 40
years, the YesCare team has provided expert medical, dental, and
behavioral health services to more than 1 million patients at 475
correctional facilities across the country. Its mission is to
provide exceptional care, put patients’ health and safety first,
and break the cycle of recidivism while helping improve the
communities where they live and work.
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