UpHealth Subsidiary, UpHealth Holdings, Files Voluntary Reorganization Under Chapter 11 of the U.S. Bankruptcy Code
September 19 2023 - 7:00AM
UpHealth, Inc. (“UpHealth,” the “Company”) (NYSE: UPH), a global
digital health company delivering technology platforms,
infrastructure, and services to modernize care delivery and health
management, today announced that its subsidiary, UpHealth Holdings,
has filed a voluntary petition for reorganization under Chapter 11
of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Delaware (the “Court”). The Chapter 11 filing follows
the September 14, 2023 decision by a trial court in New York to
grant summary judgment in favor of Needham & Company LLC
(“Needham”) in a lawsuit unrelated to the Company’s operations.
Sam Meckey, Chief Executive Officer of UpHealth, stated:
“Following the summary judgement, we immediately initiated a
comprehensive review of our options, and determined that
voluntarily filing for Chapter 11 is necessary to mitigate the
financial impact of the trial court’s decision. We do not expect
this announcement to have any impact on our operations or on the
work we are doing to deliver technology-enabled services to our
customers. We remain confident in the future prospects of our
business, and are taking this proactive step so that we may best
protect the interests of our stakeholders and achieve a fair
resolution of this matter through an appeals process of the Needham
judgment.”
Mr. Meckey continued, “We will continue to explore all
possibilities while advancing the critical mission of UpHealth. In
the meantime, I would like to recognize our dedicated employees,
whose continued support and commitment are essential to our ability
to continue our important mission and maintain our commitment to
our customers and partners.”
UpHealth’s subsidiary, UpHealth Holdings, will be filing a
number of customary first day motions that, once approved, will
allow the Company to continue to operate in the normal course of
business without interruption to its customers, vendors and
employees. The Company expects to receive Court approval for these
requests and intends to pay vendors in full for all goods received
and services provided after the filing date.
DLA Piper is serving as legal counsel to UpHealth.
About UpHealthUpHealth is a global digital
health company that delivers digital-first technology,
infrastructure, and services to dramatically improve how healthcare
is delivered and managed. The UpHealth platform creates digitally
enabled “care communities” that improve access and achieve better
patient outcomes at lower cost, through digital health solutions
and interoperability tools that serve patients wherever they are,
in their native language. UpHealth’s clients include health plans,
healthcare providers and community-based organizations. For more
information, please visit https://uphealthinc.com and follow at
UpHealth Inc on LinkedIn.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of U.S.
federal securities laws. Such forward-looking statements include,
but are not limited to, the Ch. 11 bankruptcy process and the
operations of UpHealth and its subsidiaries with UpHealth Holdings
under the protection of the Bankruptcy Court, the prospects for an
appeal of the summary judgment issued in favor of Needham, the
projected operation and financial performance of UpHealth, its
product offerings and developments and reception of its product by
customers, and UpHealth’s expectations, hopes, beliefs, intentions,
plans, prospects or strategies regarding the future revenue and the
business plans of UpHealth’s management team. Any statements
contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. In addition, any
statements that refer to projections, forecasts, or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of
UpHealth considering their respective experience and perception of
historical trends, current conditions, and expected future
developments and their potential effects on UpHealth as well as
other factors they believe are appropriate in the circumstances.
There can be no assurance that future developments affecting
UpHealth will be those anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which
are beyond the control of the parties), or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements, including the ability of UpHealth to service or
otherwise pay its debt obligations, the mix of services utilized by
UpHealth’s customers and such customers’ needs for these services,
market acceptance of new service offerings, the ability of UpHealth
to expand what it does for existing customers as well as to add new
customers, uncertainty with respect to how the ICA or the Indian
courts shall decide various matters that are before them or that
the Glocal Board will act in compliance with their fiduciary duties
to their shareholders, that UpHealth will have sufficient capital
to operate as anticipated, and the impact that the novel
coronavirus and the illness, COVID-19, that it causes, as well as
government responses to deal with the spread of this illness and
the reopening of economies that have been closed as part of these
responses, may have on UpHealth’s operations, the demand for
UpHealth’s products, global supply chains and economic activity in
general. Should one or more of these risks or uncertainties
materialize or should any of the assumptions being made prove
incorrect, actual results may vary in material respects from those
projected in these forward-looking statements. UpHealth undertakes
no obligation to update or revise any forward-looking statements,
whether because of new information, future events, or otherwise,
except as may be required under applicable securities laws.
Contacts:
Investors Relations:Shannon Devine (MZ North
America)Managing Director203-741-8811UPH@mzgroup.us
UpHealth (PK) (USOTC:UPHL)
Historical Stock Chart
From May 2024 to Jun 2024
UpHealth (PK) (USOTC:UPHL)
Historical Stock Chart
From Jun 2023 to Jun 2024