LONG BEACH, Calif., June 13, 2018 /PRNewswire/ -- Elements Behavioral Health (the "Company"), a family of behavioral health programs located throughout the United States, announced today that on June 5, 2018, it executed an asset purchase agreement (the "Purchase Agreement") with a group of its First Lien Lenders, Project Build Behavior Health LLC, ("Project Build") under which they will acquire substantially all of the Company's assets. Project Build brings over 20 years of experience in health care and the addiction space to the Company. As previously announced, to facilitate the Purchase Agreement, Elements Behavioral Health initiated proceedings under chapter 11 of the United States Bankruptcy Code in the District of Delaware ("Court").
"Existing and new clients and their families can be assured that the sale secures our ability to continue to provide the life-changing treatments we are known for," said Dr. David Sack, Chief Medical Officer and Interim Chief Executive Officer of Elements Behavioral Health. "Elements Behavioral Health is appreciative of the support of Project Build, a consortium of our First Lien Lenders, led by BlueMountain Capital and Platinum Health Care founder, Ben Klein, and we look forward to working together to ensure the long-term success of our centers and programs. Since we began the chapter 11, operations have continued to run as before and we look forward to emerging in July as a stronger organization."
Key Elements of the Purchase Agreement:
- Treatment Centers Remain Open
- Programs Continue Uninterrupted
- Services and Support for Clients and Their Families Continues
- New Clients Continue to be Accepted
- Project Build plans to inject $30m in new capital to advance the business and improve properties
- Company will have new owners and a new Board of Directors.
"Elements has a sterling reputation and incredible staff. We are excited about this potential transaction and the opportunity to help build an even better company with outstanding services and support for existing and new clients and their families," said Ben Klein, Project Build Member and Platinum Health Care Founder.
The Project Build bid is subject to an auction at which it will be subject to higher and better offers, and requires Court approval. The Court has set a bid deadline of July 16, 2018, 4:00 p.m., prevailing Eastern Time; an auction date of July 18, 2018; and a Sale Hearing of July 19, 2018.
Court filings as well as other information related to the Elements Behavioral Health chapter 11 sale are available at www.donlinrecano.com/ebh or by calling information center toll free at 1-866-416-0554, or international toll at 1-212-771-1128, or submit an inquiry via e-mail to [email protected].
The Company is represented by its legal advisor Polsinelli PC and its financial advisor Alvarez & Marsal.
About Elements Behavioral Health
Elements Behavioral Health is a family of behavioral health programs located throughout the United States. The Elements Behavioral Health® family of programs offers comprehensive, innovative treatment for substance abuse, sexual addiction, trauma, eating disorders, and other mental health disorders. Through its programs, the company is committed to delivering clinically sophisticated treatment that promotes permanent lifestyle change, not only for the patient but for the entire family network. For more information, visit elementsbehavioralhealth.com.
Jennifer E. Mercer
Donlin Recano Strategic Communications for Elements Behavioral Health
SOURCE Elements Behavioral Health