Corizon Health's Bankruptcy: A Game-Changer for Corporate America.
Originally Published 2 years ago — by Business Insider
Corizon Health, one of the largest private prison healthcare providers, has filed for bankruptcy in a controversial move to shield itself from numerous lawsuits alleging medical negligence. The bankruptcy could result in the settlement of malpractice suits for significantly less than their value, along with employment-law suits and unpaid invoices from medical providers, totaling at least $88 million. The bankruptcy tactic, known as the Texas Two-Step, involves splitting a company into parts to separate assets from liabilities before filing for bankruptcy. If successful, this maneuver could have far-reaching implications for corporate America, allowing companies to eliminate unsecured liabilities and potentially change the American economy.