We advise hospitals, medical centers and multi-institutional systems on corporate restructuring issues and strategies. As one of the most experienced health care insolvency and corporate restructuring practices in the United States, our team works with boards of directors regarding their fiduciary duties in the “zone of insolvency” and advise health care providers on the purchase and sale of assets in a bankruptcy or financial restructuring.
We counsel both for-profit and tax-exempt organizations and lenders on the development, negotiation and drafting of credit agreements, bond covenant compliance documents, waivers, forbearance agreements, debt reduction plans and disclosure documents. Our practice includes the representation of patient care ombudsmen, as well as indenture trustee and bondholder interests in health care–related workouts, insolvencies and bankruptcies, and equipment lessors, landlords and underwriters in numerous health care insolvency cases and transactions.
Our health care experience is only one facet of our larger experience representing corporations, both for-profit and tax-exempt, foundations, limited liability companies and partnerships. We have represented these entities as debtors and debtors-in-possession, secured lenders, creditors, creditors’ committees and asset purchasers, in all phases of restructurings, including pre-bankruptcy counseling, post-petition financing, asset sales, plans of reorganization, and litigation and contested matters related thereto.
Our experience representing a wide range of interests in health care restructurings gives us strategic insight into the representation of each client’s unique interests and the ability to identify structure, negotiate and implement effective strategies to achieve their objectives.
Our lawyers have served numerous hospitals and health care systems, boards of directors, lenders/secured creditors, purchasers and indenture trustees with their legal needs. Our representative matters for these clients include:
Hospitals and Health Care Systems
- Represented a hospital management company in bankruptcy and workout situations around the country.
- Represented a nonprofit hospital in a consensual stand-alone plan of reorganization, which included negotiation with CMS on legacy Medicare debt and settlement of state-issued bonds.
- Represented a hospital in an out-of-court restructuring and ultimately wind-down and closure of the hospital.
- Represented various health systems in their attempted acquisitions of assets in bankruptcy cases through a 363 sale process.
- Represented several health systems on sale and dissolution of hospital entities.
Board of Directors
- Advise hospital boards of directors on zone of insolvency/merger issues.
- Advised individual members of boards on fiduciary duty issues.
Lenders/ Secured Creditors
- Represented a senior creditor secured by interests in health care receivables.
- Represented a secured creditor in joint UCC foreclosure sale and sale of assets by a receiver of U.S. and Canadian companies engaged in the manufacture of optical lens equipment.
- Represented an agent and lender for $150 million in debt in a prepackaged bankruptcy for a medical information company.
- Served as national workout counsel for a health care lender to MRI, cancer treatment and diagnostic facilities.
- Represented lenders in multiple assisted-living bankruptcies.
- Represented a lender secured by accounts receivable of national sleep diagnostic centers in receivership and Chapter 7 bankruptcy.
- Represent a national provider of diagnostic imaging services in distressed acquisitions of imaging/radiology centers throughout the country.
- Represented the joint venture asset purchaser of health care systems.
- Represented a for-profit health care system in an attempted acquisition of distressed community hospitals.
- Represented indenture trustees in multiple health care bankruptcies, including various hospital systems.