LifeCare Holdings Files for Bankruptcy, Lenders to Acquire Holdings

LifeCare Holdings and affiliates, a hospital and senior care facility chain, announced it has agreed to be acquired by Hospital Acquisition LLC, a group of its existing lenders, after filing for Chapter 11 bankruptcy.

Court records report the Plano, Texas-based operator of 27 hospitals in 10 states holds $482.2 million in total long-term debt obligations. The company entered into a $25 million debtor in possession facility, subject to approval by the U.S. Bankruptcy Court in Wilington, Del., where LifeCare filed for Chapter 11 protection.

The company said in a statement the bankruptcy filings will not affect its relationships with affiliated hospitals and their medical staffs and payors.

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