Adeptus Health Inc (OTCMKTS:ADPTQ) is restructuring debt, emerging from bankruptcy and will eventually revert back to the symbol ADPT. The company undoubtedly hopes to return to the previous status on the NYSE. This is common for companies who go through bankruptcy, to trade on a lower tier exchange (hence adding the Q to the symbol), until the details of the restructuring are determined and proper filings are made with the SEC.
The shares actually stop trading, which can be unnerving for shareholders. If you look at a chart you can see where one stops and one begins.
Adeptus Health Inc (OTCMKTS:ADPTQ) is the largest operator of freestanding emergency rooms in the U.S., and announced that it has collaborated with Deerfield Management Company and certain of its other creditors on the terms of a comprehensive financial restructuring plan that is expected to significantly reduce the outstanding debt under the Company’s existing credit facility.
While Adeptus Health’s wholly-owned subsidiaries are included in the court-supervised restructuring process, the joint venture entities to which Adeptus is a party are not part of the court-supervised process. Through this restructuring, it is expected that ownership of the Company will transition to Deerfield. Deerfield is a 23-year-old firm focused on advancing healthcare care through investment, information and philanthropy with over $8 billion in assets, and has been a long-term investor in Adeptus.
ADPTQ has also received a commitment from Deerfield for $45 million in debtor-in-possession (DIP) financing, which is expected to support the Company’s operations during the court-supervised restructuring process. Upon completion of the restructuring, it is also expected that Deerfield will provide the Company with additional funding, operational support and healthcare expertise, ensuring that Adeptus continues to offer patients the highest-quality care, and support employees, affiliated physicians and partners.
Subscribe below and we’ll keep you on top of what’s happening before $ADPTQ stock makes its next move.
“Our partnership with Deerfield and the actions we are taking today are intended to strengthen Adeptus and enable us to continue our mission of providing access to the highest-quality medical care to the communities we serve,” said Gregory W. Scott, Chairman and Interim Chief Executive Officer of Adeptus. “Over the last several years, Adeptus has invested significantly to expand our facility footprint and respond to the growing demand for high-quality emergency medical care. While these investments have increased patient access, the associated expenditures have strained the Company’s financial resources. We believe that our partnership with Deerfield and the associated court-supervised restructuring process is the best path forward for Adeptus. As a long-term investor in the Company, Deerfield understands our business well. Their desire to deepen their relationship and commitment to our business, employees and partners demonstrates that they share our confidence in Adeptus and in our future prospects.”
Jim Flynn, Managing Partner of Deerfield Management, said, “We are pleased to enter into this partnership with Adeptus. Adeptus Health’s network of freestanding emergency rooms, employees and partners provides an excellent foundation for efficiently delivered, high-quality emergency medical care. We look forward to working closely with the Adeptus team and the dedicated physicians and medical staff working in its facilities to ensure that the Company reaches its full potential. Deerfield is committed to support the Company with capital, healthcare expertise and operational support.”
Mr. Scott continued, “As always, our facilities are open 24-7, and we are continuing to offer rapid access to board-certified physicians on-site. Importantly, we expect to continue working with our vendors and supporting the medical staff in our facilities as normal throughout this process. We thank our incredible team members for their hard work and dedication to our patients.”
Importantly, all of the Company’s owned and joint-venture freestanding emergency rooms are continuing to operate as normal. These facilities are open and are continuing to serve patients with the same high-quality care and medical attention for which they are known.
Adeptus has filed a number of customary motions seeking court authorization to continue to support its business operations during the court-supervised process, including uninterrupted payment of employee wages and benefits. The Company intends to pay vendors for goods and services provided after the filing date, April 19, 2017. The Company expects to receive court approval for these requests.
Adeptus Health Inc. (OTCMKTS: ADPTQ) looks to achieve previous trading status with the old symbol (NYSE:ADPT) and any shareholder must expect the company will go through complications as they emerge from Chapter 11, but with the new borrowing arrangements and lender intact they not have the prohibitive borrowing costs.
There’s a growing demand for emergency rooms with our aging population and expanded healthcare coverage, making ADPTQ an important stock to watch as we move into solutions for ObamaCare. We will be watching how shares respond to recent changes in its capital structure, which always converts directly to the price of any stock. For continuing coverage on shares of $ADPTQ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!