The GoHealth Chapter 11 restructuring filed June 7 will transfer ownership of the Medicare insurance marketplace to its lenders, canceling nearly all existing equity and leaving common stockholders with a share of a limited cash pool. GoHealth’s 8-K filed with the SEC on June 5 disclosed the Chapter 11 proceedings ahead of the public announcement.
| Detail | Figure |
|---|---|
| Bankruptcy case number | #26-10914, D. Del. |
| Reported assets | $500 million – $1 billion |
| Reported liabilities | Exceeding $1 billion |
| Equity recovery pool (common holders) | $10.0 million cash |
| New exit facility | $20 million |
| Lender support for plan | 100% |
The company filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. Court records via Bankruptcy Observer show the case was assigned number 26-10914, with GoHealth reporting assets in the range of $500 million to $1 billion and liabilities exceeding $1 billion, along with a creditor count in the range of 5,001 to 10,000.
The prepackaged plan already has the votes it needs. All of GoHealth’s lenders, over 60% of Class A common stockholders, and over 99% of GoHealth Holdings, LLC unitholders have voted in favor. GoHealth expects to emerge before the 2026 annual enrollment period begins.
What the GoHealth Chapter 11 Restructuring Means for Stockholders
For equity holders, the math is blunt. Under the plan, all existing equity interests other than the Series A redeemable convertible preferred stock will be canceled. GoHealth’s 8-K summary confirms that eligible Class A stockholders and GoHealth Holdings unitholders will share a $10.0 million cash equity recovery pool. The Series A preferred stock is reinstated, not canceled.
Common shares were down more than 40% in intraday trading after the announcement. The stock had already been under severe pressure heading into the filing.
The debt picture explains why lenders are taking control. According to Bondoro’s filing analysis, holders of approximately $173.9 million in Super-Priority Loan Claims will receive second-out takeback term loans under the plan. Holders of approximately $598.3 million in First Lien Claims will receive approximately $588.3 million in third-out takeback term loans plus new common equity, making them the company’s new owners. A new $20 million exit facility will fund ongoing operations and, in part, the equity recovery pool.
That debt load, north of $770 million in senior claims alone against a company with assets likely below $1 billion, left equity holders with almost no cushion once the restructuring math was done.
Operations Continue, But the Nasdaq Listing Is Gone
GoHealth is maintaining that day-to-day business runs uninterrupted. The company says it will keep serving Medicare consumers, pay vendors in full for goods and services before and after the petition date, and honor employee obligations. Kirkland & Ellis is acting as legal counsel; Alvarez & Marsal is serving as restructuring advisor.
The GoHealth Chapter 11 restructuring does carry one near-certain consequence for current shareholders beyond the equity cancellation: the Class A common stock is expected to be delisted from Nasdaq and trading suspended. After that, shares may be quoted on the OTCID Basic Market or another over-the-counter market, where liquidity is typically thin and pricing less reliable.
The company’s focus through the process is the 2026 AEP, the annual window when Medicare beneficiaries can switch plans. Missing or entering that period weakened would cost GoHealth carrier relationships and enrollment volume. Emerging before AEP starts is the stated goal, and the high level of pre-vote support makes a protracted court fight unlikely.
CEO Vijay Kotte framed the filing as a foundation reset, pointing to new ownership, a cleaner balance sheet, and continued investment in the company’s machine-learning enrollment platform. The GoHealth Chapter 11 restructuring now moves to court confirmation, and the timeline to emergence is the number to watch.
