Carbon Health is now a post-effective-date chapter 11 case: the Third Amended Plan went effective on June 15, 2026, the debtors declared substantial consummation, and remaining case activity is shifting to administrative, professional-fee, rejection-claim, and residual claims matters under the Effective Date NoticeDkt. 784.
The case began on February 2, 2026, after Carbon Health’s urgent-care and primary-care MSO platform outgrew the capital environment that had supported its expansion. The first-day declaration tied the filing to post-pandemic revenue pressure, reduced access to external financing, prior clinic sales and program wind-downs, and a January 2026 judgment levy by RPT Realty that froze about $1.9 million in a CHTI bank account; it also described roughly $99.3 million of funded debt, led by a $77 million first-lien term loan held through Future Solution Investments LLC, plus clinic-level secured debt and unsecured promissory notes First Day DeclarationDkt. 16.
The restructuring was framed from the outset as a dual-track process: preserve operations with DIP financing while pursuing either asset sales or a lender-backed plan transaction. The UCC objected that the proposed financing and milestones favored a loan-to-own path and constrained unsecured-creditor challenge rights Committee DIP ObjectionDkt. 155, but the court entered a final DIP order authorizing a $19.5 million senior secured superpriority facility from Future Solution Investments LLC, priming liens, cash-collateral use, and milestones keyed to a March bid process and May 1 confirmation target . The debtors then sought combined disclosure-statement and plan procedures for a plan that could toggle between a sale outcome and a debt-for-equity reorganization, with impaired secured and general unsecured classes voting and equity deemed out of the money .
By mid-June, the sale/plan process had resolved into emergence through the confirmed Third Amended Plan rather than an open-ended chapter 11. The Fourth Amended Plan Supplement updated restructuring-transaction mechanics, including formation of new entities, asset assignments, issuance of new equity to allowed Class 4 claimholders, and an exit facility structure Fourth Amended Plan SupplementDkt. 780. Near-term, the Effective Date Notice sets July 15, 2026 as the deadline for administrative expense and professional fee claims, while rejection claims are due 30 days after the later of the effective date or entry of the applicable rejection order Effective Date NoticeDkt. 784.
