(Bloomberg) -- AAC Holdings Inc., the publicly traded parent of American Addiction Centers, filed for Chapter 11 bankruptcy protection.
The Brentwood, Tennessee-based company listed debt of $517.4 million and assets of $449.3 million in its filing in U.S. Bankruptcy Court in Delaware. The company said in a statement on its website that it expects to emerge from bankruptcy in 125 days after executing on a recapitalization plan that will slash its debt.
AAC lined up $62.5 million of initial financing that will allow it to maintain operations during the restructuring, according to a separate statement. The company, which operates rehab centers in seven states, has struggled with its debt load, including borrowings it took on from its acquisition of AdCare in 2018.
The company defaulted on its debt obligations last year and entered into a forbearance agreement with lenders.
“No layoffs or facility closures are expected as a result of the recapitalization plan,” the company said. Treatment operations will remain unaffected and the centers will continue to provide patient care, the company said. All employees will continue to receive normal wages and benefits.
AAC operates rehab facilities in California, Florida, Texas, Nevada, Mississippi, New Jersey, and Rhode Island, according to its website.
The case is AAC Holdings Inc., 20-11648, U.S. Bankruptcy Court for the District of Delaware.
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