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LifeCare Holdings, a hospital chain operator majority-owned by the Carlyle Group (NASDAQ: CG ) , has filed for Chapter 11 protection, according to a filing submitted to the U.S. Bankruptcy Court in Delaware and quoted by The Wall Street Journal.
The company had nearly $485 million in debt. It operates 27 medical facilities in 10 states. According to the Journal, a consortium of its creditors has banded together to bid for LifeCare. They are seeking its assets in exchange for debt forgiveness.
Carlyle acquired LifeCare for $570 million in 2005. It currently holds a stake of just under 94% in the company.