Agreement Reached with Creditors in Tehum Care Services (formerly Corizon) Bankruptcy Proceedings
2024年7月19日 - 12:42AM
ビジネスワイヤ(英語)
Tehum Care Services, Inc. a correctional healthcare company
formerly known as Corizon, is pleased to announce that a settlement
has been reached with creditors, marking a significant milestone in
resolving Tehum’s ongoing bankruptcy proceedings. This agreement
represents a crucial step in obtaining the company’s long-term
goals.
The settlement, reached after extensive negotiations with both
creditors’ committees, demonstrates the parties’ commitment to work
collaboratively towards a resolution for the benefit of all
creditors. Tehum recognizes the hard work of Judge Christopher
Sontchi (ret.), former Chief Judge of the United States Bankruptcy
Court for the District of Delaware, who brought the parties and
their counsel together, including the law firms of Brown Rudnick
LLP and Berry Riddell LLC, which represent the Tort Claimants’
Committee, Stinson LLP, which represents the Unsecured Creditors’
Committee, and Gray Reed, which represents Tehum.
Under the terms of the agreement, approximately $75 million
dollars will be distributed to Tehum’s creditors through a
consensual chapter 11 plan settlement.
Eric Goodman of Brown Rudnick, co-lead attorney representing the
Tort Claimants’ Committee, stated “we applaud the efforts of the
parties to reach a settlement, which includes increased monies for
tort claimants, including incarcerated and formerly incarcerated
creditors, a major goal for our committee.”
Nicholas Zluticky of Stinson, counsel for the Unsecured
Creditors Committee, stated, “this settlement is a win for all
creditors and we are pleased with the results.”
Jason Brookner, counsel for Tehum, joined in the sentiments
expressed by counsel for the committees.
Russell Perry, Chief Restructuring Officer of Tehum, stated, “We
are very appreciative of the support and cooperation of the
creditor committees to reach resolution and pave the way for
substantial creditor recoveries.”
This agreement is expected to be voted on by the claimants and
approved by the bankruptcy court through a plan of reorganization
in the coming months. Once approved, it will enable Tehum and its
affiliate companies to implement new business strategies, invest in
growth initiatives, and serve our partner clients’ best
interests.
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