Prison Health-Care Firm Wellpath Prepares Bankruptcy Filing.

Wellpath Holdings Inc., a major provider of health-care services to prisons and jails in the US, is reportedly preparing to file for bankruptcy due to high debt and labor costs. The company, owned by H.I.G. Capital, failed to repay a credit facility and deferred interest payments, leading Moody's Ratings to view these actions as a default. Private equity-owned companies in the prison services industry, like Wellpath, have faced challenges due to heavy debt loads and increased scrutiny from various stakeholders. Moody's placed Wellpath on default status, citing cash flow pressures and poor earnings, with S&P Global Ratings also downgrading the company's ratings. [Extracted from the article]