American Addiction Centers files for bankruptcy

Brentwood, Tenn.-based AAC Holdings, the publicly traded owner of substance-abuse treatment company American Addiction Centers, filed for Chapter 11 bankruptcy June 20. 

The company entered bankruptcy with a plan to reduce its debt and reposition its business for growth. 

"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," AAC Holdings CEO Andrew McWilliams said in a news release. "We aim to expedite this process so that we can concentrate on fulfilling our mission: caring for patients in their time of need."

AAC said its facilities will operate as normal throughout the bankruptcy process. Normal operating revenue and $62.5 million in incremental financing will allow the company's treatment centers to remain open during the bankruptcy case, AAC said. 

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