Elements Behavioral Health pursues a sale using chapter 11
Elements Behavioral Health (EBH) filed for chapter 11 to conduct a sale of the company to Project Build Behavioral Health (PBBH). Prior the filing, EBH was negotiating a sale with PBBH but did not come to terms of a sale that could be completed outside chapter 11. PBBH purchased the first-lien debt and is now the current first-lien lender.
EBH and PBBH reached terms of a proposed sale with PBBH acting as the stalking horse bidder with a floor bid of $65 million, subject to higher and better offers. As part of the terms, PBBH will also be providing funding, subject to court approval, up to $9.5 million.
As of the filing, EBH had about $207 million of debt outstanding, which included, among other things, $128.7 million of first-lien debt held by PBBH and $44.2 million of second-lien debt.
Read Chief Restructuring Officer Martin McGahan’s declaration in support of the first day motions here.
View the chapter 11 petition here.
Marijuana retailer Way To Grow files chapter 11
Colorado hydroponic supply company Way to Grow sought chapter 11 protections, along with its parent company, Pure Agrobusiness. Way to Grow operates seven retail stores and an online store in Colorado, while an affiliated debtor runs one retail store in California. In aggregate, the companies brought in about $41 million in annual revenue.
As of the filing, the companies listed $500 million to $1 billion of debt and $500 million to $1 billion of assets but did not provide any breakdown of the figures.
Owner Corey Inniss is identified as the only party that has a claim to the company’s inventory and accounts receivable. At this point, the company has not identified a specific path for the chapter 11 process.
Read CEO Rick Byrd’s declaration in support of the first day motions here.
View the chapter 11 petition here.
