Distressed Financing

Nelson Hardiman lawyers are turnaround agents who have advised on some of most complex restructurings and distressed financing transactions in healthcare today. We recently orchestrated one of the most dramatic hospital turnaround stories of the decade. Our team of healthcare attorneys have extensive experience with the full range of options to relieve financial distress, including corporate reorganizations, debt restructurings, bridge loans, asset-based lending, and other distressed financing options. We offer our clients an insider’s perspective on distressed financing strategies and solutions that create and preserve value.

Our Work Involves:

  • Business Shutdown In the case of a complete business shut down, our insistence on using medical group NPI numbers for billing allowed its collateral agent clients to take control of medical group receivables, providing security even for a deal gone bad.
  • Chapter 11 Proceedings Served as Chief Restructuring Officer for 199-bed general acute care hospital’s Chapter 11 proceeding.
  • Distressed Financing Advised hospitals on turnaround strategies and provided guidance on corporate reorganizations for healthcare companies.
  • Healthcare Factoring Structured factoring transaction for six health care providers and three investment firms involving $20 million in workers’ compensation accounts receivable in response to changes brought forth by California Senate Bill 1160.
  • Healthcare Factoring Designed a lending program with multiple exit strategies which did not rely on accounts receivables as being collateral. New cash flow models and the ability to create cash flow rights after accounts had been monetized secured clients in over $100 million in facilities.
  • Hospital Workouts and Turnarounds Counseled and documented management company and acquisition of acute care hospitals both in and out of bankruptcy courts, involving workouts and operational turnarounds.
  • Restructuring Represented the borrower in obtaining a $15.8 million syndicated loan facility with Comvest Capital III, L.P., as agent, to restructure 12 physician clinic practices and ambulatory surgery centers located in California.
  • Turnaround Success Partner Rob Fuller orchestrated one of the most dramatic hospital turnaround stories of the decade. He turned down a $20 million offer to sell a struggling medical center before Chapter 11 bankruptcy procedures. With Rob’s counsel, the hospital accomplished a 180-degree reorganization and sold for $140 million.