On October 5, 2023, AREX Capital Management LP announced that it has issued a letter to the board of directors of Enhabit Inc, stating that poor communications have again caused unnecessary and substantial harm to Company?s shareholders. In addition, AREX Capital stated that the Company?s disclosure also needlessly implied that Company?s lenders had slashed their revolving credit facility commitments, an error that was repeated by several sell-side analysts. Further, AREX Capital stated that value of the Company?s highly strategic assets has been obscured by underwhelming execution and bloated overhead, thankfully, strategic alternatives review process should ultimately result in a sale, and AREX Capital emphasize to the board that there should be absolutely no question that the highest bid received in a full and fair auction is Company?s fair value and a sale of the Company is the only acceptable outcome for this process.

Further, AREX Capital stated that it can only hope that the Board is as exhausted by these persistent disappointments as its shareholders, and it will act decisively to protect the rights if the Company has not announced a sale by early next year.