On February 2, 2026, Carbon Health Technologies, Inc., a California-based urgent care provider, along with 28 affiliated debtors, voluntarily filed for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, reporting liabilities exceeding $100 million. In a press release, Carbon Health announced that it had reached an agreement with its existing lenders regarding the terms of a comprehensive restructuring aimed at recapitalization and new ownership.

The agreement establishes a dual-track, court-supervised process that enables the company to simultaneously pursue confirmation of a Chapter 11 plan based on a debt-for-equity exchange and a post-petition marketing and sale process for all or part of the company's assets.

"The decisive actions we are taking today will strengthen our financial foundation and better position Carbon Health to advance our mission of making high-quality healthcare accessible to everyone," said Carbon Health CEO Kerem Ozkay in a statement. “By using the Chapter 11 process to implement a transaction that will right-size our capital structure, we expect to emerge as a more resilient organization with the flexibility needed to support sustainable growth and continue delivering best-in-class care.”

The company has obtained up to $19.5 million in debtor-in-possession financing from Future Solutions Investments to support its operations during bankruptcy. Carbon Health emphasized that its operations would continue without interruption during the restructuring process.