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Quorum Health Topples Mudrick, Clearing Path to Bankruptcy Exit

  • Rural hospital chain will hand ownership to major creditors
  • Quorum overcame persistent challenge from distressed investor
An exam bed sits in a room at a hospital.
An exam bed sits in a room at a hospital.Photographer: Daniel Acker/Bloomberg

Quorum Health Corp. won approval of its plan to exit bankruptcy Monday, prevailing in a prolonged fight with its biggest shareholder, Mudrick Capital Management.

U.S. Bankruptcy Judge Karen Owens said in a hearing Monday she would approve the rural hospital chain’s plan to hand over ownership of the company to creditors including GoldenTree Asset Management LP and Davidson Kempner Capital Management LLC while slashing some of its $1.2 billion debt.