American Addiction Centers on Saturday announced that it has filed for bankruptcy as part of a recapitalization plan. The company filed for Chapter 11 relief in U.S. Bankruptcy Court in Delaware.
AAC said in a news release that its recapitalization plan “is designed to significantly reduce the [c]ompany’s debt obligations and establish a sound financial platform for long-term growth,” while maintaining patient care. To that end, AAC said it has secured funding that will allow its operations to continue unchanged at all of its facilities, and that all employees and staff will continue to receive normal wages and benefits. AAC operates treatment centers in California, Florida, Texas, Nevada, Mississippi, New Jersey and Rhode Island, treating drug addiction, alcohol addiction, and mental health and behavioral issues.
“We have been transparent about the need to reduce our debt, and this recapitalization will significantly enhance our financial position, building on the progress we’ve already made to strengthen and improve our operations over the last year,” CEO Andrew McWilliams said in a statement. “We aim to expedite this process so that we can concentrate on fulfilling our mission: caring for patients in their time of need.”
McWilliams, who joined AAC in 2014, was elevated to the role of CEO in January. In an open letter published on AAC’s Recapitalization Plan Resource Center website, McWilliams said the company expects the recapitalization period to last 125 days.