Private equity giants Blackstone Inc. and KKR & Co. are moving to assume operational control of the troubled dental services provider, Affordable Care. This takeover is structured around a comprehensive restructuring agreement designed to stabilize the business after facing significant financial distress.

The core element of the deal involves a massive reduction in the company's existing liabilities. The agreement mandates slashing approximately 70% of the outstanding debt burden carried by Affordable Care. This substantial deleveraging is intended to place the dental firm on a more sustainable financial footing moving forward.

Sources close to the transaction confirmed that the direct lenders, including Blackstone and KKR, will transition into ownership roles as part of the workout. This transaction exemplifies how large debt holders are increasingly using restructuring measures to convert distressed debt holdings into controlling equity stakes in portfolio companies, particularly within the healthcare sector. The restructuring is expected to finalize soon, giving the lenders direct oversight of Affordable Care’s operations.