UpHealth subsidiary Thrasys files voluntary reorganization under Chapter 11

UpHealth announced Thrasys, Inc. and its sole subsidiary Comprehensive Care Alliance, which has no operations, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Thrasys is a subsidiary of UpHealth Holdings, the subsidiary of UpHealth that filed for Chapter 11 protection on September 19, 2023 in the Bankruptcy Court. Holdings’ Chapter 11 filing followed the September 14, 2023 decision by a trial court in New York to grant summary judgment in favor of Needham & Company in a lawsuit unrelated to the Company’s operations. UpHealth and its direct and indirect subsidiaries, Cloudbreak Health, LLC and TTC Healthcare, Inc., respectively, have not filed for Chapter 11 protection and are operating in the normal course of business. The Company also announced that Behavioral Health Services, LLC, as well as the subsidiaries of Behavioral Health Services, filed for Chapter 11 protection. As previously disclosed, the Company discontinued operations of BHS earlier this year. Holdings, Thrasys and BHS have filed a motion with the Bankruptcy Court seeking to jointly administer their Chapter 11 cases under the caption In re UpHealth Holdings, Inc., Case No. 23 11476. Holdings, Thrasys and BHS have filed a number of customary first day motions that, once approved, will allow these entities to continue to operate in the normal course of business without interruption to their customers, vendors and employees. The Company expects to receive Bankruptcy Court approval for these requests and intends to pay vendors in full for all goods received and services provided after the filing date.