KKR & Co.’s Envision Healthcare Corp. is in negotiations with some of its creditors after missing a March deadline to report its quarterly financials, WSJPro Bankruptcy reported. The Nashville, Tenn.-based physician-staffing company missed the March 31 deadline to report its fourth-quarter financials, triggering a technical default under the company’s loans that it has 10 business days to cure. Envision, a physician-staffing firm and one of KKR’s biggest health care investments, has signed nondisclosure agreements with a subset of its first-lien lenders represented by law firm Gibson Dunn & Crutcher LLP. Envision contracts with hospitals to provide them with an array of medical professionals and has struggled since the COVID-19 pandemic started as more patients tried to avoid going to the hospital for nonemergency care. The company’s most recent earnings report for the quarter ended Sept. 30 showed revenue dropped 13% year-over-year to $1.6 billion. Some of the company’s bonds and loans are currently trading as low as 15 cents on the dollar, according to market data provider Solve, a sign that investors aren’t expecting to get paid back in full.
