LifeCare files for Ch. 11 bankruptcy protection

(AP) Hospital operator LifeCare has filed for Chapter 11 bankruptcy protection.

The Plano, Texas, chain runs 27 long-term hospitals in 10 states. The company, which was acquired by private equity firm Carlyle Group LP in 2005, says it has agreed to bought by its lenders, but hopes to see what results from an auction supervised by the bankruptcy court.

LifeCare says it secured $25 million in financing from JPMorgan Chase and has around $20 million in cash on hand.