21st Century Oncology files for Chapter 11

21st Century Oncology has filed for Chapter 11 bankruptcy protection, a decision that follows years of declining revenue, two multimillion-dollar settlements related to billing fraud allegations and ongoing lawsuits, the Naples Daily News first reported.

The company, which has treatment centers in Manatee, Sarasota and throughout 17 states, said the restructuring plan would reduce its debt by $500 million. Interim CEO Paul Rundell said in a statement that he doesn’t expect the process to disrupt existing clinics, appointments or treatment schedules.

21st Century Oncology has also asked the court to approve the payment of all employee salaries and benefits. In the meantime, the company’s primary lenders have agreed to provide $75 million in cash to allow business to continue as usual.

But the move could eventually affect the company’s roughly 4,000 global employees, scores of whom live and work in Southwest Florida. As of March, 21 Century Oncology operated 179 treatment centers, including 143 centers in 17 states. It has another 36 centers in seven Latin American countries. Steven Goldberg, a Los Angeles-based company spokesman, said the company has no immediate plans to lay off employees.

It’s also unclear how this move might affect the multiple lawsuits against the company now in the federal courts.”

This story was originally published May 31, 2017 at 2:22 PM with the headline "21st Century Oncology files for Chapter 11."