Nursing Home Chain
Service:Financial Advisor to Debtor
Company:$85MM Nursing Home Chain
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 Management Group was engaged as Financial Advisor to effectuate a restructuring during its Chapter 11 reorganization.
- 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.
- 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.