Inspired Healthcare Capital, LLC has filed for Chapter 11 bankruptcy, a significant move that will impact its operations and stakeholders. This decision, filed on February 2, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas, follows changes in the company’s governance and leadership structure that occurred in October 2025. The firm, which specializes in senior housing investments, has secured approximately $35 million in debtor-in-possession (DIP) financing to support its ongoing operations during the restructuring process.
The voluntary Chapter 11 petition includes 160 affiliated entities, emphasizing the scale of the firm’s financial challenges. According to the company’s statement, this filing will enable Inspired Healthcare to focus on resident care while maximizing value for stakeholders. The restructuring aims to alleviate the company’s debt burden and facilitate a marketing and sale process for its assets.
M. Benjamin Jones, appointed as the Chief Restructuring Officer, highlighted the ongoing liquidity difficulties faced by the firm. “Over the past several years, Inspired Healthcare Capital faced significant liquidity challenges and became reliant on raising additional capital,” Jones stated. He also noted that these issues were exacerbated by “recent regulatory inquiries and subsequent threatened litigation.”
Objectives of the Chapter 11 Process
The primary goal of the Chapter 11 process is to maintain quality housing and care for residents while optimizing asset values for all stakeholders involved. The firm intends to use the DIP financing to ensure that it can continue operations without interruption, allowing residents to receive the necessary amenities and services as usual. This financing will also help the company fulfill its obligations to employees, vendors, and partners throughout the restructuring period.
Inspired Healthcare Capital oversees approximately 2,620 residents across 35 senior living facilities in 14 states, including various types of living arrangements such as independent living, memory care, and assisted living. The firm aims to implement a thorough restructuring that addresses existing legal claims through a court-approved process.
Leadership Changes and Legal Representation
The recent bankruptcy filing follows significant leadership changes within the company. In October 2025, the senior leadership team was replaced by independent managers, with CRS Capstone Partners, LLC appointed as an independent manager. Additionally, Trinity River Associates, LLC was selected to manage the controlling entities of the Delaware Statutory Trusts.
M. Benjamin Jones, from Ankura Consulting Group, will oversee the operations during this Chapter 11 process, working alongside the newly appointed leadership team. Legal representation is provided by Marcus A. Helt from McDermott Will & Schulte LLP, while Raymond James & Associates, Inc. serves as the investment banker.
The filing indicates that Inspired Healthcare Capital, LLC has estimated assets and liabilities both ranging from $1 billion to $10 billion. The company currently owes between 10,001 and 25,000 creditors, and plans to ensure that funds will be allocated for distribution to unsecured creditors.
As this Chapter 11 process unfolds, it marks a critical turning point for Inspired Healthcare Capital, LLC. The court-supervised restructuring aims to stabilize operations amid liquidity challenges and regulatory pressures. The outcome will shape the future of the firm as it navigates potential sales and restructuring opportunities.
