YesCare Gets a Chapter 11 Trustee With $95M Owed to Unsecured Creditors

Judge Luis E. Rivera II approved a deal on July 30 handing administration of YesCare’s Chapter 11 to an independent trustee, at the request of the official committee of unsecured creditors.

Why it matters: A trustee, not YesCare’s management, now decides whether to sue you for preferences.

What the July 30 trustee order changes

A Chapter 11 trustee displaces existing management and takes over the estate’s litigation claims, so a different party now decides whether your receivable gets paid or clawed back.

• Judge Rivera approved the trustee arrangement on July 30 in the cases YesCare Corp., CHS FL, CHS TX, and CHS AL filed on May 8, 2026.
• Appointing a trustee under Section 1104 terminates the debtor’s exclusive right to file a plan under Section 1121(c)(1), so the creditors committee can now propose its own.
• The trustee inherits the estate’s avoidance claims, including preference actions against suppliers YesCare paid in the 90 days before the May 8 petition date.

Where $95 million in unsecured claims sits

Suppliers share the unsecured class with a tort book several times the size of the trade book, and that dilution is the recovery problem in this case.

• YesCare reported $50 million to $100 million in assets against $100 million to $500 million in liabilities, according to its petition.
• M2 LoanCo, a lender affiliated with YesCare insider Isaac Lefkowitz, asserts roughly $20 million in secured debt, a position the Tehum trusts are challenging in Texas.
• YesCare owes about $95 million to unsecured creditors, who share that class with tort claimants holding the $307.6 million verdict a federal jury in the Eastern District of Michigan returned on April 2 in Jackson v. Corizon Health.

Roughly 80% of YesCare’s revenue is already gone

The trustee inherits a business that has already lost most of its contract base, so treat this as a Chapter 11 wind-down, not a restructuring you will keep selling into.

• Government agencies terminated, suspended, or declined to renew contracts worth more than $350 million a year after the Jackson verdict, including Alabama’s $1 billion Department of Corrections contract.
• YesCare is closing its Brentwood, Tennessee headquarters and cutting roughly 150 positions on dates running through August 31.
• The Tehum trusts are still owed about $35 million of a $50 million settlement and are suing to unwind the 2022 Texas divisional merger that created YesCare out of Corizon, the same structure the trusts allege is being run a third time through a newer affiliate.

What to do now

Get your documentation in order before the trustee sets a bar date, because an unsecured class estimated at up to $400 million leaves no room to fix a thin claim later, and your recovery options in a Chapter 11 narrow as the case moves.

1. Confirm which legal entity signed your contract, because only YesCare Corp., CHS FL, CHS TX, and CHS AL are debtors and a number of affiliated CHS entities stayed outside the cases, then file your proof of claim against the right one.
2. Pull every payment YesCare or its centralized management account sent you on or after February 7, 2026, since those fall inside the 90-day preference window the trustee now controls.
3. Notify your credit insurer of the filing today if you carry coverage, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
4. Contact Securitas Global Risk Solutions to review whether your remaining correctional-healthcare and government-contractor exposures are insurable before the next filing in this chain.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.