AAC Holdings Gains Support From Lenders, Proceeds With Recapitalization Plan to Support Patient Care & Long-Term Growth

• With Treatment Operations Unaffected, AAC Will Continue Providing High-Quality Patient Care
• Company Recapitalizes with Initial $62.5M in Incremental Financing & Lower Debt Cost to Better Position the Company and Its Treatment Facilities for Long-Term Growth
• AAC & Its Treatment Facilities Positioned for Long-Term Growth

BRENTWOOD, Tenn., June 20, 2020 (GLOBE NEWSWIRE) -- AAC Holdings, Inc. (“AAC” or the “Company”) (OTC: AACH), a leading provider of inpatient and outpatient substance abuse treatment services, today announced it has received the support of its Board of Directors and lenders to move forward with a strategic recapitalization plan. The plan is designed to significantly reduce the Company’s debt obligations and establish a sound financial platform for long-term growth, while maintaining AAC’s outstanding standards for patient care.

Maintaining its focus on compassionate patient care, life-saving treatment and positive outcomes, AAC’s operations will continue unchanged as the process moves forward over the next four months. All employees and clinical staff will continue to receive their normal wages and benefits to support their delivery of life-saving patient care.  

“We are grateful for the support of our board, lenders, management team and business partners in this strategic recapitalization plan, which is strong validation that AAC remains well-positioned to provide high quality, critical care services to vulnerable individuals while also achieving long-term growth,” said Chief Executive Officer Andrew McWilliams. “We have been transparent about the need to reduce our debt, and this recapitalization will significantly enhance our financial position, building on the progress we’ve already made to strengthen and improve our operations over the last year. We aim to expedite this process so that we can concentrate on fulfilling our mission: caring for patients in their time of need,” McWilliams continued.

To implement the recapitalization, AAC today filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the District of Delaware. By employing the Chapter 11 process as an instrument for recapitalization, AAC aims to join a number of leading companies like Delta Airlines, General Motors, Marvel Entertainment, Texaco and others who have emerged from recapitalization with a stronger balance sheet.