Carbon Health is past the main sale and confirmation-hearing phase but the context pack does not show an entered confirmation order, leaving the case in a post-hearing posture funded by final DIP authority and awaiting the next court status marker. The debtors filed on February 2, 2026 after a post-pandemic revenue decline, limited financing access, clinic divestitures and wind-downs, and an immediate liquidity squeeze caused by an RPT Realty judgment levy that froze about $1.9 million in a CHTI bank account, all against a capital structure that included roughly $77 million of secured debt to Future Solution Investments LLC and additional clinic-level secured and unsecured obligations described in the Ozkay first day declarationDkt. 16.
The restructuring was framed from the start as a dual-track case: preserve operations for a multi-state urgent and primary care MSO while testing a sale process for clinics and CarbyOS against a plan toggle that would hand the reorganized business to secured lenders through a debt-for-equity exchange. Financing became the first major fight. The UCC objected that the proposed Future Solution DIP would entrench a lender-led “loan-to-own” path, credit bid the full asserted $77 million even during challenge litigation, and burden unsecured recoveries with liens on avoidance proceeds and estate waivers, as set out in the UCC DIP objectionDkt. 155. The court nevertheless entered a final DIP order authorizing a $19.5 million new-money facility from Future Solution, priming liens, superpriority claims, cash-collateral use, adequate-protection liens and claims for prepetition secured parties, and case milestones targeting sale-order and confirmation-order deadlines in March and May through the .
The plan path followed quickly. On March 4, the debtors sought interim approval of a combined disclosure statement and plan built around either a sale of substantially all assets or a debt-for-equity restructuring, with a wind-down and liquidating trust for general unsecured creditors; the proposed schedule set solicitation, voting, objection, and confirmation deadlines leading to a May 1 confirmation hearing in the combined disclosure statement and plan procedures motionDkt. 275. The hearing timeline later shows the confirmation hearing completed on May 29, 2026, while the most recent docket activity in the pack consists of April monthly operating reports filed that same day, including entity-level reports showing minimal or no activity at several debtor subsidiaries and continued reference to the $19.5 million DIP and plan process, such as the Central Jersey monthly operating reportDkt. 736. The next listed milestone is a scheduled July 20, 2026 status conference.