CAA emerges from Chapter 11 | Health care
The parent company of American Addiction Centers completed its bankruptcy reorganization, during which it deleveraged by about $ 500 million.
The reconstituted AAC operates 26 facilities in eight states and employs more than 2,000 people. It is, as he did as he approached its filing in chapter 11, led by CEO Andrew McWilliams, who succeeded founder Michael Cartwright earlier this year.
“We are grateful to the court and our major secured lenders for recognizing the critical need for our services both now and in the future,” McWilliams said in a statement. “We are thrilled to be positioned for growth as the first company to truly transform drug treatment. “
A quintet of five investment firms that controlled much of AAFC’s pre-bankruptcy debt had asked this summer find a buyer for the company. This effort failed, leaving the businesses under the control of the Brentwood-based company for the foreseeable future.
McWilliams is one of the seven board members of the new AAC. The others have been nominated by investment firms and are:
• Jason Gart, analyst at HG Vora Capital Management, who can appoint two directors as long as he owns at least 17.5% of the shares of AAC
• Sengal Selassie, co-CEO and co-founder of Brightwood Capital Advisors and former managing partner of Cowen Capital Partners. Brightwood also has the same appointment rights as HG Vora.
• Mikhail Katz, Director at Brightwood and Former Senior Vice President at Jefferies Finance
• Loren Beck, commercial litigator and former President and General Counsel of Cliffside Malibu
• Bowen Diehl, President and CEO of Capital Southwest Corp., who will chair the Board of Directors. Diehl is a past president of The Meadows of Wickenburg, an Arizona-based alcohol and drug treatment provider.
• Mark Stolper, CFO of publicly traded RadNet and former investment banker
Similar to HG Vora and Brightwood, asset manager CQS LLC can appoint a board member if he or she owns at least 8.75% of AAC’s equity. Capital Southwest and Main Street Capital may jointly appoint a director provided they also own a combined 8.75 percent.