Wendy G. Marcari, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s New York office, was quoted in Modern Healthcare, in “Healthcare Bankruptcies Dropped in 2024: Gibbins Report,” by Caroline Hudson. (Read the full version – subscription required.)

Following is an excerpt:

The number of Chapter 11 bankruptcy filings in healthcare dropped significantly in 2024 from the previous year, though filings still hit historically high levels. …

High levels of debt on the balance sheet, especially in private equity-backed deals, are a key factor driving bankruptcy filings. …

Many of these companies are highly levered, and they use the financing to pay dividends to their owners, said Wendy Marcari, an attorney at Epstein Becker Green. [Debt is] a real problem, and that’s generally why they need resort to bankruptcy or some other restructuring, even if it’s out of court.

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