Creditors Tuesday persuaded an investment group offering to buy Elements Behavioral Health Inc. to make a key concession in the bidding for the debt-burdened addiction-rehabilitation center, WSJ Pro Bankruptcy. An investment vehicle that includes hedge fund BlueMountain Capital and Platinum Health Care founder Ben Klein has set its sights on Elements Behavioral, and will lead the bidding at a planned July bankruptcy auction. The buyout group is also Elements Behavioral’s top-ranking lender, and, as such, was in position to dominate the auction, creditors feared. At a hearing yesterday in the U.S. Bankruptcy Court in Wilmington, Del., the BlueMountain buyout group agreed to limit the amount of “credit-bidding” it will do to $65 million.
