Broken Promises? –
May 23, 2018, – Elements Behavioral Health Inc., which operates the addiction-rehabilitation center where actress Lindsay Lohan and singer Britney Spears sought treatment, filed for chapter 11 bankruptcy protectionWednesday with a deal to a group that includes hedge fund BlueMountain Capital and Platinum Health Care founder Ben Klein for $65 million. The privately owned company, based in Long Beach, Calif., was exploring a sale earlier this year, according to people familiar with the matter. The company had previously considered a sale in 2014 when it was projected to produce $25 million in earnings before interest, taxes, depreciation and amortization, according to people familiar with the matter.
Ultimately the latest sale process ended without a deal and an investment vehicle called Project Build Behavioral Health LLC purchased Elements’ senior debt and agreed to serve as the stalking horse, or lead bidder, for the company’s assets, according to court filings and the people familiar with the matter. Mr. Klein signed off on a letter of intent outlining the terms of the sale on behalf of the investment vehicle, according to court papers.