Quorum Health’s Voluntary Petition for Chapter 11 Reorganization

On April 7, 2020, Quorum Health Corporation (“Quorum Health”) filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware. In conjunction with this petition, Quorum Health signed a Restructuring Support Agreement (“RSA”) with a majority of its term and revolving loan lenders and noteholders on a “pre‑packaged” plan to recapitalize the business and significantly reduce the company’s debt. The company also received a commitment of debtor‑in‑possession financing of $100 million, which was approved by Judge Karen Owens on April 9, 2020.

Cravath is representing Credit Suisse AG (“Credit Suisse”), in its capacity as administrative agent and collateral agent under the Credit Agreement dated as of April 29, 2016, among Quorum Health, Credit Suisse and the lenders party thereto. Cravath is advising Credit Suisse throughout the course of the bankruptcy case, which is expected to conclude at the Confirmation Hearing scheduled for May 22, 2020.

The Cravath team includes partners Paul H. Zumbro and Lauren A. Moskowitz and associates Alexander Gerten, Jessica I. Choi and Lavinia M. Borzi on financial reorganization and restructuring and related litigation matters, partner Stephen M. Kessing and associate Jason L. Zhang on banking matters, and practice area attorney Janet L. Lewis on real estate matters.