Carbon Health Technologies Inc. has commenced a pre-arranged Chapter 11 bankruptcy as part of an agreement with its lenders to restructure its balance sheet and explore a potential sale. The tech-powered primary care provider will continue to serve patients during the process. Several affiliated entities have also filed for Chapter 11 protection.
Carbon Health Technologies Inc. Seeks Bankruptcy Protection
According to PACER records, Carbon Health Technologies Inc. submitted a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. The petition was signed on February 2, 2026, by CEO Kerem Ozkay.
Attorney Maxim B. Litvak of Pachulski Stang Ziehl & Jones LLP is representing Carbon Health in the case.
According to the official filing, 28 affiliates of the virtual primary healthcare provider sought Chapter 11 protection as well. These include Carbon Health Alpha Medical Group of Florida, P.A.; Djavaherian Medical Practice, PLLC; Ritecare Medical Center, LLC; among others.
Agreement With Lenders and Debtor-in-Possession (DIP) Financing
The decision to proceed with a Chapter 11 filing came after Carbon Health Technologies Inc. reached a pre-arranged agreement with lenders for a dual-track court supervised process. According to PR Newswire, this includes a debt-for-equity exchange and a post-petition sale process for whole or part of the healthcare business’s assets.
In recent years, Carbon Health Technologies Inc. broadened its healthcare platform to serve the community across channels better. However, post-pandemic changes, such as fluctuating patient demand and reduced healthcare funding, led to financial difficulties. Against that backdrop, the Chapter 11 process is intended to support a balance-sheet restructuring and potential sale.
With a current debtor-in-possession financing of nearly $19.5 million from Future Solutions Investments, the company expects to continue operations, maintain patient care, and pay employees and suppliers throughout the process.
Kerem Ozkay stated, “It will be business as usual while we complete the restructuring and sale. Patients should experience no disruption to their care. We will continue providing urgent and primary care to new and existing patients in our clinics and through virtual visits when appropriate. Patients will also retain full access to their medical records, and their health information will remain secure.”
Company Background
Carbon Health has been offering primary healthcare and urgent care services, both virtually and in person, since its establishment in 2015. The modern healthtech company combines custom technology with expert care to meet the diverse needs of patients.
Case Details
Alvarez and Marsal is the financial advisor to Carbon Health Technologies Inc. in the latest Chapter 11 proceedings. Pachulski Stang Ziehl & Jones LLP is the bankruptcy counsel in the case, the court records state.
Here are other crucial aspects of the filing:
- Filing Date: February 2, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-90306
- Estimated Assets: $100,000,001 – $500 million
- Estimated Liabilities: $100,000,001 – $500 million
- Reason for Filing: Restructure business under court supervision
The filing states that Carbon Health Technologies Inc. currently owes more than 100,000 creditors in total. The filing notes that funds will be available for distribution to unsecured creditors.
Among the documents submitted to the court is the board of directors’ unanimous written consent for Carbon Health Technologies Inc. A list of creditors with the 30 largest unsecured claims who are not insiders was also submitted.
Other documents filed by the healthcare business include a corporate ownership statement, a list of equity security holders, and a verification of creditor matrix.
The Chapter 11 filing positions Carbon Health to restructure its balance sheet while continuing patient care and exploring strategic options, including a potential sale.
