GenesisCare files for bankruptcy, poised to sell US company

GenesisCare, a global cancer and cardiac care service provider, has filed for Chapter 11 bankruptcy, according to a June 1 press release.

The company noted that it has secured $200 million in commitments for debtor-in-possession financing from its current lenders in the meantime to continue operations. 

GenesisCare has 5,500 employees and operates in several countries including Australia, the U.S. and the U.K., but as part of the restructuring due to its bankruptcy filing, the company stated in the news release that it intends to "explore separation of its U.S. business from its businesses in Australia, Spain and the U.K., creating two platforms." 

Doing so, it explained, will allow for more sustainable operations going forward.

"As part of the restructuring process, we are refocusing our business on the national markets we serve, enabling investment in key growth areas and equipment, and simplifying the organization to deliver better life outcomes for patients, while improving our operational and financial performance," David Young, CEO of GenesisCare said in a statement. 

The next hearing related to its bankruptcy filing is set for June 27 and will cover first day motions in which the company's attorney will submit a request to the court to pay certain creditors to allow for continued business operations.

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