Bankrupt medical technology firm UpHealth Holdings Inc. told a Delaware bankruptcy court it has struck a settlement with India’s Glocal Healthcare Systems Private Ltd., ending a bitter $200 million adversary battle that grew out of a soured merger.
Filed Monday, the motion details how Glocal and its shareholders—including Syed Sabahat Azim, Richa Sana Azim, Gautam Chowdhury, and Kimberlite Social Infra Private Ltd.—have agreed to drop their legal crusade in exchange for a carefully crafted deal.
Terms of the UpHealth Chapter 11 Glocal Deal
Under the agreement:
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Glocal will pay $10 million to UpHealth.
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Glocal will withdraw its push for a Chapter 7 liquidation, filed in January.
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Glocal will receive a $37.5 million unsecured claim in the Chapter 11 process.
“The debtors believe that the settlement is fair and reasonable and in the best interests of the debtors’ estates and their creditors,” UpHealth said in its motion, emphasizing that the pact resolves all disputes in one sweeping stroke.
Support has already lined up behind the deal, with both the official committee of unsecured creditors and the ad hoc group of secured noteholders signaling approval.
