Focus Management Group

Healthcare Industry Experience

Nursing Home Chain

Industry:

Healthcare

Company:

$85MM Nursing Home Chain

Situation:

A nursing home chain composed of 27 separate legal entities was beset with cash flow issues. Its lender was reducing availability under a revolving credit facility while operational issues were resulting in patient lawsuits.

Focus Scope:

Focus Management Group was engaged as Financial Advisor to effectuate a restructuring during its Chapter 11 reorganization.

Tasks Performed:

  • Developed all schedules and reporting mechanisms for the Court
  • Streamlined the Company’s financial reporting structure
  • Provided expert testimony and financial planning advice to counsel.
  • Reviewed payments to third party vendors and undertook an analysis of the availability of such transfers.
  • Recommended the orderly closure of under-performing locations and businesses
  • Improved cost efficiency via restructuring and outsourcing certain activities
  • Performed an operational review on a location-by-location basis to determine the viability of each facility, resulting in significant cost cutting measures.

Results:

  • The Company emerged from bankruptcy in October 2006 as a restructured entity with positive cash flow.
  • Eliminated uncertainty regarding rights to operate under certain leases.
  • All creditors of the Company were paid in full under the confirmed Chapter 11 plan.
  • The Company’s owners retained ownership under the confirmed Chapter 11 plan.
  • As a result of our involvement, Focus Management Group received the Healthcare Deal of the Year and Service Deal of the Year in 2007 by the M&A Advisor.
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