Addiction rehab network, EBH Topco, is reportedly in $207M in debt.
According to reports, Elements Behavioral Health and 31 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware yesterday. The company, which operates network of addiction rehabilitation facilities in the U.S. reportedly is $207 million in debt and plans to sell its assets to a prepetition secured lender also serving as a stalking horse bidder in the case.
EBH Topco LLC, the parent company, reportedly runs a network of 13 inpatient treatment centers in eight states with 772 beds total, and also runs 22 outpatient facilities with patients from 50 states and 29 countries, according to court documents.
The network, which provides inpatient and outpatient treatment for drug, alcohol and other addictions, has struggled in recent years, as its patient flow has slowed and insurance reimbursement rates have fallen, according to reports.
Project Build Behavioral Health LLC acquired EBH’s $128 million of first-lien debt and began negotiating with the soon-to-be debtor on an in-court sale process.
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Elements Behavioral Health to investors.
Broker dealers are required by law to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker makes an unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses. It may be possible to recover your losses through FINRA Arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Are you concerned about your investment in Elements Behavioral Health? If so, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please contact The White Law Group at 1-888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.