Recovery Brands, LLC is in a confirmed-plan posture as part of the AAC Holdings chapter 11 cases, with the court having confirmed the debtors’ Second Amended Joint Chapter 11 Plan on October 20, 2020 through the Confirmation OrderDkt. 695. Recovery Brands filed with AAC Holdings and affiliated debtors in Delaware on June 20, 2020, after AAC’s substance-abuse treatment platform entered chapter 11 with 26 inpatient and outpatient facilities across eight states, about 1,360 beds, and approximately 2,000 professionals supporting detoxification, residential, partial-hospitalization, and outpatient programs, as described in the Campbell First Day DeclarationDkt. 3.
The filing followed a capital structure the debtors said included more than $363.6 million of prepetition secured debt, principally a roughly $316.6 million junior-lien facility and a $47 million senior-lien facility, plus other obligations including a $9.6 million subordinated note. The debtors had already pursued expense reductions of more than $30 million annually, but liquidity remained strained as COVID-19 depressed patient admissions even after AAC received $10 million of PPP funds; before filing, the debtors entered into a restructuring support agreement with lenders holding more than 89% of the loans, pairing the case with proposed $62.5 million DIP financing and a path toward either a going-concern sale or standalone reorganization, according to the Campbell First Day DeclarationDkt. 3.
The restructuring ultimately proceeded through a plan rather than remaining an open first-day liquidity case. AAC Holdings and its debtor affiliates filed the on October 11, 2020, structured as a reorganization plan with nine classes, and the court confirmed that plan nine days later in the . The available record does not identify an upcoming hearing or near-term milestone after confirmation, so the operative posture is implementation of the confirmed reorganization framework rather than an unresolved sale or financing process.
