AAC Completes Financial Restructuring

Six months after filing Chapter 11 bankruptcy, American Addiction Centers (AAC) has completed its financial restructuring process, the company announced Monday.

During that time, AAC reduced its debt by about $500 million, setting the provider up for its “next phase of growth.” The ultimate goal is to continue serving people suffering from substance use disorder (SUD).

“We are thankful to the court and our senior secured lenders for recognizing the critical need for our services both now and in the future,” CEO Andrew McWilliams said in a press release announcing the news. “We are excited to be positioned for growth as the first company to truly transform the treatment of substance abuse, and I look forward to working with the board, as well as all of our dedicated staff, to provide effective clinical care and treatment solutions and deliver on our mission.”


Headquartered Brentwood, Tennessee, AAC bills itself as the largest provider focused solely on treating substance use disorders (SUD). It offers both inpatient and outpatient treatment services, with 26 facilities in eight states. 

The company filed bankruptcy in June, following a few years of financial struggles that were only compounded by the COVID-19 emergency. AAC’s aim in filing Chapter 11 was to recapitalize its business and lighten its debt load of $517.3 million.

A federal bankruptcy court in Delaware approved AAC’s reorganization plan in October.


The plan set AAC up to “emerge with the support of a term loan exit financing agreement … equal [to] AAC’s $62.5 million debtor-in-possession loan and $51 million of prepetition senior lien term debt,” Law 360 reported at the time.

The loan has an 18% interest rate, of which 10% is to be paid in cash and 8% is in kind.

As part of the restructuring, AAC also got a new seven-member board of directors, which be led by Bowen Diehl as chairman. Diehl is president, CEO and a director of Capital Southwest Corporation.

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