YesCare, a leader in correctional healthcare, is pleased that a comprehensive settlement agreement has been reached with the creditors of Tehum Care Services, Inc., formerly known as Corizon, marking a significant milestone in Tehum's ongoing bankruptcy proceedings. The agreement represents a crucial step toward the company's long-term goals.
The settlement, reached after extensive negotiations with both creditors’ committees, demonstrates the parties’ commitment to working collaboratively towards a resolution for the benefit of all creditors. YesCare recognizes the hard work of Judge Christopher Sontchi (ret.), former Chief Judge of the United States Bankruptcy Court for the District of Delaware, who brought the parties and their counsel together, including the law firms of Brown Rudnick LLP and Berry Riddell LLC, which represent the Tort Claimants’ Committee, Stinson LLP, which represents the Unsecured Creditors’ Committee, and Gray Reed, which represents Tehum.
Under the terms of the agreement, approximately $75 million dollars will be distributed to Tehum’s creditors through a consensual chapter 11 plan settlement.
Jeff Sholey, CEO of YesCare, stated, "We are grateful for the support and cooperation of the creditor committees during this challenging period. This agreement not only underscores our confidence in YesCare’s business model and prospects but also allows us to move forward with renewed focus and stability.”
Our priority remains to deliver the value healthcare to our hundreds of thousands of patients around the country, our thousands of employees, and stakeholders."
The settlement is expected to be voted on by claimants and approved by the bankruptcy court through a plan of reorganization in the coming months. Under the terms of the proposed settlement, YesCare and other settling parties would receive a release of estate claims. Once approved, it will enable YesCare and its affiliate companies to implement new business strategies, invest in growth initiatives, and serve our partner clients' best interests.
Jimmy Sprouse, CFO of YesCare, added, "This agreement provides a clear path forward and ensures that we can continue to operate effectively while addressing our financial obligations. We believe this settlement will position us for sustained growth."
YesCare also extends its sincere appreciation to its employees, partner clients, and all stakeholders for their ongoing support throughout this process. The company remains committed to maintaining transparent communication and will provide further updates as the settlement progresses.
About YesCare
YesCare is an industry leader providing comprehensive healthcare and reentry services to incarcerated individuals. For more than 40 years, the YesCare team has provided expert medical, dental, and behavioral health services to more than 1 million patients at 475 correctional facilities across the country. Its mission is to provide exceptional care, put patients’ health and safety first, and break the cycle of recidivism while helping improve the communities where they live and work.
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