SynergenX Files Chapter 11 With $82.3M Debt, Wins Interim Cash Collateral Access

SynergenX Legacy Holdings, LLC, a multi-state health-clinic platform focused on hormone health and weight management, filed for chapter 11 protection on July 2, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas. The Debtors operate 64 clinics across 10 states under the SynergenX, Low T Centers, and HerKare brands, according to the first-day declaration of CEO Wayne Wilson, whom the Houston Business Journal had named a 2025 Most Admired CEO. The court has since granted joint administration before Judge Christopher M. Lopez and designated the case as complex.

Debtor(s)	SynergenX Legacy Holdings, LLC (jointly administered debtor entities)
Court	U.S. Bankruptcy Court, Southern District of Texas
Case Number	26-90644
Petition Date	July 2, 2026
Judge	Christopher M. Lopez

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Brand Consolidation Ahead of a Revenue Decline

SynergenX brought its Low T Center and HerKare clinics together under a single brand identity roughly three weeks before the filing. The Houston Business Journal had ranked SynergenX among Houston's fastest-growing companies in September 2025. Wilson's declaration puts last-twelve-month revenue at $172.11 million, but LTM EBITDA had fallen to $16.78 million from $28.46 million in 2024. As of May 31, 2026, unaudited financials show total assets of approximately $118.476 million against total liabilities of approximately $146.028 million.

Senior Lender Dispute and Prepetition Debt

SynergenX operates as a management-services organization: the debtor entities provide administrative, billing, and facility services to affiliated physician-owned professional entities that employ the platform's licensed medical staff and sit outside the debtors' corporate structure, according to Wilson's declaration. SynergenX Legacy Holdings is the majority owner of SynergenX Joint Holdings, LLC, which in turn owns SynergenX Health Holdings, LLC, the intermediate holding company atop the operating debtors.

Wilson states that Chatham Capital Management and JP Morgan Asset Management, identified in the declaration as the "Senior Lenders," held the company in what he calls a perpetual state of default for roughly 18 months while charging a 17.25% default interest rate and blocking payments to junior creditors. The prepetition capital structure consists of a senior credit agreement dated September 6, 2022 — a $66.5 million term loan and $5 million revolver administered by Chatham Capital Management, with approximately $67.579 million now outstanding — alongside approximately $14.726 million in junior secured debt owed to Michael Sisk, Mickala Sisk, Blackfire Capital LLC, and Cudjoe Key LLC. Total funded debt across both tranches is approximately $82.3 million.

The declaration also details an unsecured stack of roughly $1 million in trade payables, $20.191 million in accrued liabilities, $32.595 million in lease liabilities, approximately $10 million in unpaid tax distributions owed to the company's owners, and a $10.557 million warrant liability.

Wilson attributes the filing to the Senior Lenders' refusal to cure defaults that he says blocked a planned sale to Future Standard, a transaction he ties to the company's inability to obtain completed 2024 and 2025 audits. He also says insurance carriers halted payments pending those audits, further restricting cash flow, and alleges the lenders interfered with refinancing efforts and pharmacy operations. None of these allegations have been adjudicated.

Cash Collateral Access and the Senior Lenders' Objection

Rather than seek new debtor-in-possession financing, the Debtors are asking to operate on cash collateral. Their emergency motion requests authority to use cash collateral under a budget allowing a 15% variance, without conceding the Senior Lenders' lien validity or perfection. The Ad Hoc Group of Senior Secured Lenders and Chatham, as administrative agent, filed a limited objection on July 7, 2026, challenging the adequacy of the proposed adequate protection package, disputing budget line items and a professional-fee carve-out, and conditioning interim consent on an order expiring no later than July 21, 2026.

Lopez signed an interim order on July 9, 2026, authorizing continued cash collateral use through the final hearing. The order grants the senior loan lenders replacement liens plus section 507(b) superpriority claims, grants the junior lenders replacement liens matching their prepetition priority, subordinates all replacement liens to a limited carve-out for statutory and professional fees, and preserves the Debtors' right to later contest the Senior Lenders' lien validity and perfection. A second-day hearing on a final order is set for July 21, 2026, at 1:00 p.m. Central time in Houston's Courtroom 402. Objections to a further interim or final cash collateral order are due July 17, 2026, or two business days after the Debtors file a proposed final order and 13-week budget, whichever is later.

Critical Vendor, Payroll, and Utility Relief

The first-day package also sought authority to pay prepetition obligations that Wilson said were necessary to keep the clinics operating. The Debtors' critical vendor motion sought authority to pay up to $146,726.99 to vendors across categories including healthcare products, pharmacies, laboratory services, environmental monitoring, and clinical- and billing-software providers, conditioned on those vendors continuing prepetition trade terms. Lopez authorized the relief on an interim basis in an order entered July 7, 2026.

The Debtors' workforce spans approximately 143 corporate employees and 400 nonprofessional field staff, plus 32 independent contractors and 191 professional and lab staff whose wages the Debtors process on behalf of non-debtor SynergenX Physician Services, PLLC. A separate motion requested authority to pay $284,995.56 in employee wages, $161,628.23 in independent-contractor compensation, $301,676.22 in wages owed through affiliated professional entities, $219,227.10 in payroll taxes, and $36,060.61 in employee benefits, subject to the $17,150 per-employee cap under the Bankruptcy Code. Lopez granted that relief the same day, while barring prepetition or postpetition bonus, incentive, retention, or severance payments to insiders without further court order.

The Debtors also obtained an order establishing adequate assurance procedures for utility providers, opening a 21-day window from the July 7 order for utilities to object to the proposed adequate assurance deposit. Any utility dispute must otherwise be resolved within the greater of 14 days from a provider's request or 30 days from the petition date.

Stretto Retention and Proposed Case Professionals

Stretto serves as claims and noticing agent under a retention application submitted by Brian Karpuk, a Stretto managing director, that Lopez approved in a July 7, 2026 order, with a $50,000 prepetition retainer. The Debtors also won continued use of their existing cash management system through an interim order entered the same day. Notices of appearance filed since the first-day hearing include Tennbay Real Estate Investments, LLC and a series of Texas taxing authorities — among them the City of Frisco, Tarrant County, Dallas County, Lone Star College System, and Bexar County — represented by Linebarger Goggan Blair & Sampson. ACHM Trust 2025-HE2 filed its own notice of appearance on July 10, reserving procedural, jurisdictional, and jury-trial rights without stating a merits position. The court has extended the deadline for the Debtors to file schedules, statements of financial affairs, and Rule 2015.3 reports to August 6, 2026, and modified the 2015.3 reporting interval from monthly to six months.

The Debtors filed applications on July 15, 2026 to retain the Law Offices of Frank J. Wright, PLLC as lead bankruptcy counsel and Shannon Lee Beatty LLP as bankruptcy co-counsel, plus applications to retain Lain, Faulkner & Co. and FTI Consulting as financial advisors, each proposed effective July 2, 2026 pending court approval. A related motion for interim compensation procedures would set monthly fee and expense-reimbursement procedures for the four proposed professionals; none of the retention applications or the compensation-procedures motion had been approved as of the docket activity reviewed for this report.

Date	Event
September 6, 2022	Senior credit agreement executed with Chatham Capital Management as agent
July 2, 2026	Petition date; chapter 11 filed in Houston
July 7, 2026	Interim orders entered on critical vendors, employee wages, utilities, and cash management; limited objection to cash collateral motion filed
July 9, 2026	Interim cash collateral order signed
July 10, 2026	ACHM Trust 2025-HE2 files notice of appearance
July 15, 2026	Debtors file applications to retain proposed lead and co-counsel and two financial advisors, plus a motion for interim professional-compensation procedures
July 17, 2026	Deadline to object to further interim or final cash collateral relief
July 21, 2026	Second-day hearing on final cash collateral order, 1:00 p.m. Central, Courtroom 402
August 6, 2026	Extended deadline for schedules, SOFA, and Rule 2015.3 reports

Frequently Asked Questions

Who is the claims agent for SynergenX Legacy Holdings?

Stretto serves as the claims and noticing agent. The court entered the retention order on July 7, 2026.

Why did SynergenX file for chapter 11 instead of pursuing new DIP financing?

Wilson's declaration says the company is instead seeking authority to use cash collateral of its existing secured lenders, with a final hearing on that request set for July 21, 2026.

For coverage of similar healthcare provider bankruptcies, see GoHealth's prepackaged chapter 11, Global Wound Care Medical Group's Medicare-driven filing, and Avante Health Solutions' credit-bid sale.