GoHealth completes restructuring and exits Chapter 11 as lender-owned private company

October 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

October 2026 Issue

US insurance brokerage GoHealth has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy protection following confirmation of its prepackaged plan of reorganisation by the US Bankruptcy Court for the District of Delaware.

The Chicago-based company filed for Chapter 11 protection in June 2026 after facing significant financial pressure, including declining revenues and mounting losses during 2025. Once valued at approximately $6.6bn, GoHealth entered bankruptcy proceedings carrying close to $1bn in debt. Following its restructuring, the company aims to maintain its position as a leading health insurance marketplace and Medicare-focused digital health business.

Under the confirmed restructuring plan, ownership of GoHealth has transferred to certain lenders. The plan also reinstates preferred equity, provides for the payment in full of trade payables and other ordinary-course obligations, and includes a cash distribution to existing equity holders. The company said these measures will help preserve important relationships with customers and health insurance carriers as it moves forward under a new ownership structure.

The restructuring is supported by a new senior secured takeback credit facility comprising $20m in new-money term loans and more than $760m in senior and junior takeback term loans. The facilities mature five years from the effective date and are secured by first-priority liens, together with liquidity and cash-sweep requirements designed to support the company’s long-term financial stability.

In connection with the restructuring, GoHealth amended its tax receivable agreement to avoid change-of-control termination payments. The company also converted into New GoHealth, LLC, redistributed value among creditor and equity classes, appointed a new board of directors and cancelled previous equity incentive plans. In addition, it announced plans to file a Form 15 to deregister its securities and suspend reporting obligations with the Securities and Exchange Commission.

The transaction formally took effect on 21 July 2026, marking the company’s transition from a publicly listed business to a privately held, lender-owned organisation.

“We are pleased to have successfully completed our expedited restructuring process, marking the beginning of a new chapter for GoHealth as a financially stronger company,” said Vijay Kotte, chief executive of GoHealth. “With an improved capital structure, we will have additional flexibility to build on our market-leading position and continue delivering for our Medicare consumers and partners.”

The company completed the process swiftly, emerging from Chapter 11 only 44 days after commencing bankruptcy proceedings under its prepackaged plan.

Kirkland & Ellis LLP acted as legal counsel to GoHealth, while Alvarez & Marsal North America, LLC served as financial restructuring adviser. Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to the lenders, with FTI Consulting serving as financial adviser. Cahill Gordon & Reindel LLP and RPA Advisors, LLC acted as counsel and financial adviser respectively to a subset of the lenders.

Since its founding in 2001, GoHealth has helped millions of consumers enrol in Medicare plans. The company says its mission is to provide peace of mind to consumers making healthcare decisions. Its proprietary technology platform uses machine-learning algorithms and more than two decades of insurance purchasing data to help match health plans with individual consumer needs.

With its restructuring complete and new ownership in place, GoHealth will operate as a private company focused on strengthening its financial position while continuing to serve Medicare consumers and insurance partners.

Mr Kotte added: “We are grateful to our new owners for their support and confidence in our business and future prospects.”

GoHealth’s emergence from Chapter 11 marks a significant milestone in its turnaround efforts, providing a stronger financial foundation and fresh ownership support. The company now faces the challenge of translating restructuring success into sustainable growth while maintaining its position in the competitive Medicare marketplace.

Fraser Tennant