Carestream Health files for bankruptcy. Carestream Dental is not part of this!

August 23, 2022 -- Carestream Health has voluntarily filed for Chapter 11 bankruptcy protection as part of the final phase of the company's planned recapitalization process. Under a new prepackaged reorganization plan that was approved by its lenders, $470 million of debt would be eliminated -- $250 million more than the previously announced deal in April to convert $220 million in debt to equity, Carestream said. This new plan will significantly strengthen its balance sheet and position the company for continued success, according to the vendor. The recapitalization is expected to be completed in 35-45 days. In the meantime, Carestream said it would continue operating normally and remain focused on serving its customers and working with suppliers on normal terms. To reinforce Carestream's liquidity and to fund the costs of the reorganization, certain existing lenders have committed to provide an $80 million debtor-in-possession financing facility, the company said.