Bright Health Group will go belly-up by the end of the year if it doesn’t raise additional capital, executives said during a call with investors Wednesday.
The health insurance company spent the $350 million available in its revolving credit facility, which violated the terms of an agreement with its lenders because Bright Health is required to maintain at least $200 million in this account, Chief Financial Officer Cathy Smith said. The company has until the end of April to make up the shortfall.
“We are working hard to obtain additional financing to alleviate the going concern qualification, and we are laser-focused on addressing these issues,” Smith said.
