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07/10/2019 -ATIN- The newly rebranded Promises Behavioral Health is making its first new
investments after rising from the post bankruptcy ashes of addiction
treatment giant Elements Behavioral Healthcare. Elements was the largest
Chapter 11 filing in recent addiction treatment history, with the
company listing $500M in debt at the time of its bankruptcy in May of
2018.
Promises is revamping its low cost, in network Right Step
operation with extensive renovations to its 38K sq ft Houston facility,
which will have a 60 private room capacity. The Washburn House facility,
located in Massachusetts in the town of the same name, will be
expanding its detox and residential bed capacity, as well as opening a
new 16-bed dual diagnosis facility that is being partly funded by the
state.
The public/private partnership - South Florida's Delphi
Behavioral recently did a similar deal with a county government in
Maryland - is indicative of the innovative approaches being taken by
Promises' new management team, headed up by CEO Kirk Kureska. Kureska
was brought in by new investors, treatment entrepreneur Ben Klein and
BlueMountain Capital, after they gained control of Elements by buying
$135M face value of the company's senior debt for just $40M.
Management has
moved to close marginal operations, including the storied Promises
Malibu, which nevertheless retained considerable value as one of the
very few global addiction treatment brand names, thus the new Promises
Behavioral moniker.
Promises now has 11 facilities in major markets like Texas, Pennsylvania and Florida.
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