Case timeline

1. Apr 262023
   Status: Medly converts to Chapter 7 after Chapter 11 wind-down

   The court converted Medly Health Inc. and its affiliated debtors from Chapter 11 to Chapter 7, ending the debtor-in-possession phase and moving the remaining estate administration to a Chapter 7 trustee process under the conversion order. The order followed the debtors’ own conversion motion package and came immediately after the April 25 hearing, making the conversion the next major case milestone after the company’s Chapter 11 sale and wind-down efforts.

   For restructuring professionals, the practical shift is control and recovery posture: remaining claims administration, asset cleanup, avoidance-action decisions, and distribution timing now sit in a liquidation framework rather than a Chapter 11 plan process. The U.S. Trustee appointed David Carickhoff the next day as Chapter 7 trustee through the trustee appointment, giving creditors a new fiduciary to watch for next steps on estate monetization and claims reconciliation.

   Sources and provenanceApril 26, 2023