Premier Health Announces Termination of Forbearance Agreements With Principal Lenders and the Continuance of Its Strategic Review Process

The most recent release (May 8, 2026) discloses that Premier Health of America terminated its forbearance agreements with principal lenders. The company had been in default of financial ratios under its credit agreements as of Dec 31, 2025, and a forbearance agreement originally signed in April 2025 to tolerate those defaults was terminated on April 10, 2026. The company is now actively negotiating with lenders to resolve the default situation and is evaluating strategic alternatives, including potential partnerships and engagement of strategic advisors.

This follows a series of deteriorating events:
- Oct 2, 2025: Premier Health’s Quebec subsidiaries were placed on the Register of Enterprises Ineligible for Public Contracts, barring them from public contracts in Quebec for five years. That segment represented about 12% of total revenues.
- Jan 27, 2026 (Q4 2025 results): Revenue fell to C$20.79M (down from C$33.46M YoY), adjusted EBITDA dropped to C$440k, and a net loss of C$6.5M included C$3.33M in impairment charges. The Per Diem segment was abandoned.
- Feb 25, 2026 (Q1 2026 results): Revenue collapsed further to C$17.8M (down 44% YoY), adjusted EBITDA was only C$5k, and net loss C$2.55M. The company discontinued Per Diem and Transportation operations, focusing solely on Travel Nurse services.

Thus, the most recent news confirms that the financial covenant breach is unresolved and lenders are no longer granting forbearance, elevating the risk of acceleration or enforcement.

The termination of forbearance is a material negative event. A company that has violated debt covenants and lost lender forbearance is in acute financial distress. The historical news shows a pattern of sharply declining revenue, negative earnings, and operational retrenchment. The loss of 12% of Quebec public-contract revenues due to regulatory ineligibility compounds the problem. With lenders now free to take action, the company faces potential demand for immediate repayment, forced asset sales, or insolvency proceedings.

The market has largely priced in distress (stock at $0.03, down from $0.08 a year earlier), but this news signals that the situation is worse than previously expected. While a strategic review may eventually produce a value-preserving outcome, the immediate loss of lender patience significantly raises the risk of a severe dilution or total wipe‑out for equity holders. The news is not a mere continuation of the status quo; it is a decisive negative step in the credit relationship.

Premier Health of America Inc. is a Canadian healthcare staffing company, historically providing Travel Nurse, Per Diem, and Transportation services. After discontinuing Per Diem and Transportation in early 2026, it now focuses entirely on Travel Nurse services across Canada. The flagship is its travel‑nurse placement business, which serves health authorities and communities, particularly in British Columbia, Ontario, and northern regions. The company’s Quebec operations have been crippled by a five‑year ineligibility for public contracts (12% of revenues) imposed by the Autorité des marchés publics.