Healthcare: Bankruptcy & Financial Restructuring
Porzio has extensive experience achieving our clients' goals in the distressed healthcare industry. Our attorneys represent hospitals and medical service providers in bankruptcy proceedings, as well as out-of-court restructurings. We have represented struggling nursing home operators and numerous creditor committees in both hospital and nursing home cases. We have also represented parties purchasing healthcare assets out of bankruptcy proceedings.
Porzio has been a leading advisor to the healthcare industry for over 40 years. As appropriate, our Bankruptcy & Financial Restructuring attorneys also work with lawyers from the Life Sciences practice group to provide the most thorough counsel possible for any healthcare financial restructuring project.
Representative Healthcare Engagements
As the below representative healthcare engagements reveal, we have achieved substantial distributions for our committee clients in a field where there is often little to no return to creditors.
Christ Hospital: Restructuring and Chapter 11 Debtor's Counsel – Porzio guided this Hospital and its thousands of creditors through a successful Chapter 11 reorganization. We sold this not-for-profit to a for-profit operator, and provided funds for a substantial distribution to unsecured creditors, preserving 1,500 union jobs at this $150,000,000/year institution.
710 Long Ridge Road Operating Company II, LLC, et al. – Porzio represented the Official Committee of Unsecured Creditors in the bankruptcy cases of 710 Long Ridge Road Operating Company II, LLC, et al., a Chapter 11 restructuring case involving five nursing home facilities. Due to financial distress and labor issues, these nursing homes were threatened with potential closure. As committee counsel, Porzio assisted in the confirmation of a plan of reorganization that secured a 75% distribution to trade creditors and a fund providing for a reduced distribution for all other unsecured claims.
St. Mary's Hospital, Passaic – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 reorganization of this hospital located in Passaic, New Jersey, and the post-confirmation creditor trust. Although the confirmed plan estimated a slightly less than 5% dividend for unsecured creditors, we quadrupled that estimate, distributing dividends aggregating 20% to unsecured creditors.
St. Joseph's Wayne Hospital: Restructuring Counsel – completed a successful out-of-court restructure of this hospital, bringing together diverse constituencies including creditors, the NJ Department of Health, bondholders, and employees to reach a successful restructuring/funding of the institution without Chapter 11, leading to its subsequent merger into St. Joseph's Regional Medical Center.
Drug Fair Group, Inc., et al. – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceedings of this drugstore chain and the $50 million sale transaction. Porzio successfully assisted in the negotiation of a $2.5 million carve-out for the benefit of Debtors’ unsecured creditors in this "no equity" case, obtaining a distribution for unsecured creditors where one was otherwise not available.
Nathan and Miriam Barnert Memorial Hospital Association, d/b/a Barnert Hospital – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding of this hospital formally located in Paterson, New Jersey. Through Porzio’s representation, the Committee played an active role in the sale of the hospital’s assets and facilitated competitive bidding that maximized value for the estate.
Miller Health Care, LLC – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding of this nursing home operator. Through Porzio’s representation, the Committee led the charge on investigating substantial claims against the Debtor’s landlord and facilitated a global resolution that formed the basis for a chapter 11 plan of reorganization, which included a distribution to unsecured creditors.
Pascack Valley Hospital Association, Inc. – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding and liquidation of this hospital. Although the case was administratively insolvent, a small distribution was made to unsecured creditors.
Lakeview Subacute Care Center, Inc. – Represented the shareholders of this skilled nursing facility in this successful bankruptcy proceeding which preserved shareholder value.
New Jersey Community Blood Center – Assisted this facility in a successful out of court restructuring and re-issuance of its EDA bonds.
Heathcare Associations and Organizations
In addition to numerous other industries, Porzio Bankruptcy & Financial Restructuring attorneys currently or have recently held the following healthcare industry leadership roles:
- Co-chair, Healthcare Committee of the American Bankruptcy Institute (ABI)
- Editor, ABIHealthcare Newsletter
- Board Member, New York Chapter, Arthritis Foundation
- Board Member, New Jersey Chapter, Arthritis Foundation
