New Delaware Chapter 11 Filing – EBH Topco, LLC
EBH Topco, LLC, along with thirty-one (31) subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11212). Based in Long Beach, CA, and better known as Elements Behavioral Health, EBH and its affiliates operate as a clinical care provider for addiction and mental health disorders, with operations in ten states. EBH’s Petition reports $50 – $100 million in assets and $100 – $500 million in liabilities and discloses that EBH is a health care business, as defined under Section 101(27A) of the Bankruptcy Code. According to the Board Resolution attached to the Petition, EBH enters Chapter 11 having secured DIP Financing and the consensual use of cash collateral with its pre-petition first lien lender, Project Build Behavioral Health, LLC. A First Day Declaration has not yet been filed. Donlin Recano is the proposed claims and noticing agent. Assignment of the cases is pending.
Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter. Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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