Inspired Healthcare Capital Gets Court Approval for $40M DIP, June Auction
By Damon Elder
A federal bankruptcy court has approved $40 million in debtor-in-possession, or DIP, financing and a court-supervised asset auction for Inspired Healthcare Capital Holdings LLC, clearing the path for a Section 363 sale process in the company’s Chapter 11 case.
The approvals, granted at a March 20 hearing in the U.S. Bankruptcy Court for the Northern District of Texas, allow the company to draw on an amended DIP financing facility and formally initiate a competitive sale process. The auction is scheduled for June 24, 2026, according to court filings.
The DIP facility, led by Lapis Municipal Opportunities Fund V LP, provides liquidity to cover ongoing property-level expenses, employee compensation, and vendor payments while the company markets its assets. The original commitment at the time of IHC’s February filing was $35 million; the final approved facility is $40 million.
The court also approved bid procedures establishing the framework for the auction. The procedures allow for designation of a stalking horse bidder – which the company does not expect to name until May 2026. It set deadlines for competing bids and include protections such as break-up fees intended to encourage participation.
Together, the approvals confirm IHC’s Chapter 11 case is proceeding as a DIP-funded sale process rather than a traditional reorganization.
In a related development, the court on March 23 authorized the debtors to reject certain executory contracts and unexpired leases and to abandon related personal property, effective as of the petition date. The rejected agreements include office and operating leases tied to properties in Arizona and Texas, as well as related service contracts.
Lease rejections are a standard step in Chapter 11 cases, typically used to reduce costs ahead of a sale.
The case involves more than 160 affiliated entities and a capital structure that includes Delaware statutory trust investments. DST investors and the broker-dealers that distributed IHC’s programs are closely watching how property-level assets and DST-related interests will be treated in the sale process – specifically, whether assets are sold individually or as part of larger portfolios.
Under the approved procedures, binding bids are due in June ahead of the June 24 auction. A sale, if one results, would require final court approval.
IHC filed for Chapter 11 protection in February, reporting estimated liabilities between $1 billion and $10 billion. The filing followed the July 2025 suspension of investor distributions, an ongoing U.S. Securities and Exchange Commission regulatory review, and the shutdown of the company’s in-house operating arm: Volante Senior Living.
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