GoHealth is approaching confirmation of an amended prepackaged plan that would recapitalize the business through a consensual lender-led change of control, with the confirmation hearing set for July 20. The debtors filed on June 7 after liquidity pressure from an unsuccessful expansion into a non-agency business, rising healthcare costs and regulatory headwinds left the Medicare-focused insurance marketplace unable to support its funded-debt burden; a 2025 Justice Department complaint alleging False Claims Act and Anti-Kickback Statute violations, which GoHealth denies, added further pressure. The first-day declarationDkt. 4 describes approximately $772 million of funded debt and prepetition support from all term lenders, approximately 61% of Class A common stockholders and more than 99% of GoHealth Holdings interest holders.
The cases began as a fast-track balance-sheet restructuring rather than a sale process. GoHealth sought consensual use of cash collateral to operate through the case, including the run-up to the Medicare enrollment cycle, while pursuing a plan that converts approximately $174 million of super-priority loans into second-out exit debt and approximately $588 million of first-lien loans into third-out exit debt. The proposed capital structure also includes a $20 million first-out new-money exit facility; general unsecured claims and preferred equity would be reinstated, and Class A common stockholders would share a $10 million cash pool. The transaction also depends on an amendment to the tax receivable agreement to avoid a change-of-control early-termination liability, as detailed in the CEO’s confirmation declarationDkt. 148.
