An open letter from AAC CEO, Andrew McWilliams

FAQs

Why is this happening?

We have been transparent for a while that AAC needs to significantly reduce our debt obligations to better position the company and its treatment facilities for sustainable long-term growth. This recapitalization plan will do just that. It is a balance sheet and equity restructuring that builds upon the significant progress we have made to strengthen and improve our operations over the last year.

What does this mean? Will facilities close?

AAC will continue to provide the same high-level of clinical care for all clients at every facility across the United States. No layoffs or facility closures are expected as a result of the recapitalization plan. AAC has secured additional funding to continue to operate all of its addiction treatment centers and to meet its commitments to clients, employees and suppliers during the recapitalization period.

How long will the recapitalization take?

We expect to emerge from the recapitalization process in 125 days. During this process, AAC will continue to conduct business as usual.

FAQsPatientsEmployeesShareholdersVendors

Patients

How does this impact patients?

Patient care will not be at risk or impacted.

What is important to know is that during recapitalization process, AAC will continue to operate our business as usual, without layoffs, staff reduction or facility closures. The capital provided by the lenders will be used to deliver the level of care our patients expect and deserve, including routine COVID testing for patients and staff.

Please know that we remain absolutely committed to our vision of providing adults struggling with addiction and co-occurring mental health disorders with quality, compassionate, and innovative care that instills hope that long-term recovery is possible.

Patients or family members with additional questions should contact their local treatment facility.


Employees

How does this impact employees? Will there be layoffs?

We will continue to operate our business as usual during this period, without layoffs, staff reductions or facility closures. The capital provided by the lenders will be used to ensure that we continue to have the resources necessary to deliver the level of care our patients expect and deserve, including routine COVID testing for patients and staff.

The recapitalization plan is designed to strengthen AAC’s financial position so we can continue to provide the highest quality care and recovery assistance AAC clients have come to expect of us, and we are all committed to deliver.


Stockholders

How are stockholders impacted?

We urge stockholders to consult with their financial advisor to learn more about the ramifications of the Chapter 11 process. The interests of shareholders will be addressed by a disclosure statement and a plan of reorganization.


Vendors

How does this announcement affect vendors?

We value our vendor relationships and will continue to work closely with you as we move forward. Our facilities remain open and fully staffed as we continue to provide high quality care to patients across the country.

Will vendors and suppliers continue to be paid in full?

During the restructuring process, The Court requires all goods and services purchased by AAC after the bankruptcy filing to be paid per the contracted terms and conditions. You should consult with your counsel regarding any legal notice received with respect to AAC’s restructuring.

American Addiction Centers

200 Powell Pl Brentwood, TN 37027

(888) 987-1784

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Recapitalization Plan 

Resource Center