Ares Management ($ARES) portfolio company Aspen Group abandoned WellNow sale as debt pressure mounted

The Aspen Group has dropped plans to sell its urgent care chain WellNow, stepping back from a process that lenders had expected could generate up to $300 million to help reduce the company's debt burden.

The move came as lenders retained Gibson Dunn & Crutcher while Aspen worked to address roughly $3 billion of loans due next year. Aspen Group is owned by private equity firms Ares Management (NYSE: ARES), Leonard Green & Partners and American Securities.

Bloomberg previously reported the company was exploring outside investment after weaker earnings. Aspen reported first-quarter adjusted EBITDA of $101.1 million, down nearly 6% year over year.

Aspen Group, which is privately held, operates Aspen Dental, WellNow urgent care clinics, ClearChoice dental implant centers, Chapter Aesthetic Studio and Lovet Pet Health Care.