World Health files for bankruptcy
World Health Alternatives (Pittsburgh) reported it has filed a voluntary petition for relief under Chapter 11 bankruptcy, along with several subsidiaries. The company and its subsidiaries filed petitions in the U.S. Bankruptcy Court for the District of Delaware in Wilmington to facilitate a sale of the company and its subsidiaries.
World Health also said that it had entered into a “stalking horse“ agreement for the sale of substantially all of its assets and the assets of its subsidiaries to Jackson Healthcare Staffing, an affiliate of Jackson Healthcare Solutions, for a purchase price of about $43 million in cash plus the assumption of certain liabilities, including liabilities to retained employees and staffing professionals. A motion has been filed with the Bankruptcy Court seeking approval of bidding procedures and the sale of assets.
In connection with the bankruptcy filings, the company announced that it has secured a $37 million debtor-in-possession financing facility from CapitalSource Finance. The company anticipates that the financing, together with its ongoing revenue stream, will fund its operations, including payment of employee wages and benefits, during the sale process.