Quorum Health Corp. is set to skirmish with activist investor Mudrick Capital Management LP over how long the hospital operator should hang around in bankruptcy in expectation of a federal bailout, WSJ Pro Bankruptcy reported. Money from the Coronavirus Aid, Relief and Economic Security Act, also known as the Cares Act, could help in averting a wipeout for Quorum shareholders, according to Mudrick, a distressed-debt-focused hedge fund run by Jason Mudrick. Quorum says in court papers that Mudrick is trying to “extract holdup value” by advancing speculative valuations, which would justify a return to shareholders. The investor is urging a delay in a chapter 11 plan process that Quorum hopes will get it out of bankruptcy by June, with a trimmer balance sheet. A bankruptcy judge in Delaware is slated to preside over the debate today.
