Four things to know:
1. Envision hired investment bank Houlihan Lokey to advise on its $7.5 billion debt restructuring earlier this year, and since then it has also become clear that the company hired law firm Kirkland & Ellis. KKR, the private equity company that owns Envision, is working with Paul Weiss Rifkind Wharton & Garrison lawyers to advise on the restructuring, which could include Chapter 11 bankruptcy.
2. The company made the move to restructure its debt and possibly file for bankruptcy after the COVID-19 pandemic halted elective surgeries. Envision includes AmSurg, a large ASC chain with about168 centers.
3. Envision has $1.23 billion of unsecured bonds due 2026, which traded for 30 cents on the dollar last week, according to the report. It had $650 million in cash at the end of March.
4. Envision’s business dropped 65 percent to 75 percent due to the cancellation or postponement of elective surgeries.
More articles on surgery centers:
How SCA, Tenet, Surgery Partners are weathering the COVID-19 pandemic & more — 11 ASC industry notes
ASC closures, contracts & conversions amid the COVID-19 crisis: 8 recommendations
Colorado ASC loses 85% of cases to COVID-19 pandemic
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