Delaware mental health provider files for bankruptcy

Citing multiple pressures on liquidity, Delaware's largest outpatient drug and mental health provider filed for Chapter 11 bankruptcy protection April 19. 

The embattled Connections Community Support Programs, based in Wilmington, is aiming to induce a bankruptcy-shielded sale of the company, according to court documents. 

The bankruptcy filing comes days after a third lawsuit was filed against the company by Delaware and federal agencies alleging improper billing practices and violations of the Controlled Substance Act, according to Law 360. The False Claims Act cases are seeking triple damages, according to the report. 

Connections Community Support Programs has appointed EisnerAmper's Robert Katz as chief restructuring officer to help it through the bankruptcy process and potential sale.

In the court documents, Connections Community Support Programs said it has 10,000 to 25,000 creditors and lists assets of $50 million to $100 million and debts of $50 million to $100 million.

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