Prison Health Company, Wellpath, Reaches Creditor Settlement of $15.5 Million

Prison health company Wellpath on Tuesday announced a settlement with its junior creditors, including people that had sued the company for allegedly providing substandard medical care, removing a major obstacle to the company’s exit from Chapter 11.

The settlement will provide $15.5 million to junior creditors, give them a 33.3% equity stake in the reorganized company and provide other benefits, Wellpath’s attorneys said at a bankruptcy court hearing before U.S. Bankruptcy Judge Alfredo Perez in Houston, Texas.

Read more at Reuters