A Settlement on the Eve of a Crucial Hearing
The resolution comes just weeks before a Sept. 10 hearing, where the judge was set to weigh confirmation of UpHealth’s Chapter 11 plan and the dismissal of Glocal’s adversary proceeding.
Back in July, UpHealth accused Glocal of “bad faith” tactics, delay, and obfuscation. Mediation dragged on until June, with little progress—until last-minute negotiations sparked Monday’s signed truce.
UpHealth’s Tumultuous Path to Bankruptcy
Florida-based UpHealth and six affiliates filed for bankruptcy in September 2023, citing more than $100 million in debt. The company’s financial unraveling traces back to its 2021 tie-up with Cloudbreak Health LLC, which formed the publicly traded UpHealth Inc.
Compounding its troubles, UpHealth lost a $31 million fee dispute with investment bank Needham & Co. LLC, a financial adviser on the merger. That loss was quickly followed by the bankruptcy filing.
In October 2024, UpHealth submitted its Chapter 11 plan, later winning interim court approval of its second amended disclosure statement, giving the company the green light to solicit support.
