Quorum Investors Say Bad Faith Warrants Ch. 11 Plan Denial

By Jeff Montgomery (June 22, 2020, 10:25 PM EDT) -- A top equity holder to rural hospital chain Quorum Health Care Services LLC urged a Delaware bankruptcy judge late Monday to reject the company's Chapter 11 plan, claiming that a lack of good faith and low-balled company valuations propped up a scheme to wipe out stockholders.

Mudrick Capital Management LP, which holds 15% of Quorum's shares, told U.S. Bankruptcy Judge Karen B. Owens that the plan was both unfairly presented and no longer relevant, based on receipts in recent weeks of tens of millions in aid for COVID-19 care losses under the federal government's Coronavirus Aid, Relief and Economic Security, or...

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