Connecticut Governor Ned Lamont and Attorney General William Tong have pledged to monitor the bankruptcy closely, with Tong vowing to “actively participate” to safeguard state interests, employees, and patients.
The company did not address its Connecticut operations in the press release announcing the filing.
U.S. Senator Sheldon Whitehouse of Rhode Island criticized Prospect in a January Senate report, alleging the company distributed $645 million in dividends and preferred stock redemptions while defaulting on substantial loans. “Private equity investors have profited at the expense of hospitals and communities, leaving others to deal with the fallout,” Whitehouse remarked.
Prospect Medical is represented by Thomas R. Califano of Sidley Austin LLP.
The case is In re: Prospect Medical Holdings Inc., case number 8:25-bk-80002, in the U.S. Bankruptcy Court for the Northern District of Texas.
