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UpHealth adds Thrasys, BHS units to Chapter 11 bankruptcy proceedings
By Sarah Lizee
Olympia, Wash., Oct. 20 – UpHealth, Inc. placed Thrasys, Inc. and its only subsidiary, Comprehensive Care Alliance LLC, in Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware, according to a press release issued Friday morning.
Thrasys is a subsidiary of UpHealth Holdings, Inc., the subsidiary of UpHealth that filed for Chapter 11 protection on Sept. 19 in the Delaware court.
UpHealth Holdings’ Chapter 11 filing followed the Sept. 14 decision by a trial court in New York to grant summary judgment in favor of Needham & Co. LLC in a lawsuit unrelated to the company’s operations.
UpHealth, Inc. and its direct and indirect subsidiaries, Cloudbreak Health, LLC and TTC Healthcare, Inc., respectively, have not filed for Chapter 11 protection and are operating in the normal course of business.
“As we continue to seek a fair resolution of the Needham decision, we determined that placing Thrasys into Chapter 11 is the best course of action to ensure its immediate cash needs are met,” Martin Beck, chief executive officer of UpHealth, said in the release.
The company also announced that Behavioral Health Services, LLC (BHS), as well as the subsidiaries of BHS, filed for Chapter 11 protection. As previously disclosed, the Company discontinued operations of BHS earlier this year.
UpHealth Holdings, Thrasys and BHS have filed a motion with the bankruptcy court seeking to jointly administer their Chapter 11 cases.
DLA Piper is serving as legal counsel to UpHealth and its subsidiaries.
UpHealth, a Delray Beach, Fla.-based digital health company, filed bankruptcy under Chapter 11 case number 23-11476.
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