Health Care Financial Restructuring

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HLB attorneys have deep expertise in health care financial restructuring, representing stalking horse bidders, asset buyers, landlords, tenants, lenders, secured and unsecured creditors, debtors-in-possession and other parties in interest in multi-faceted litigation and complex transactions. In connection with HLB’s representation of health care companies in bankruptcy, we serve as special counsel to handle regulatory matters, DIP financing, medical office building leases, real property sales and acquisitions and other types of transactions similar to the work we do for health care companies outside of bankruptcy. We also defend creditors in preference and fraudulent conveyance lawsuits filed by debtors, bankruptcy trustees and creditors’ committees seeking to recover transfers made to the creditor before bankruptcy. Our clients benefit from HLB’s sophisticated knowledge of the health care regulatory system and singular ability to address all angles and nuances of financial restructuring and bankruptcy within the health care industry.

We have helped clients in chapter 11 bankruptcy cases in California, Delaware, Texas, Florida, New York and other states. Our lawyers can and do appear in bankruptcy cases filed anywhere in the United States. There are five published bankruptcy decisions featuring an HLB attorney.

In addition to extensive “true bankruptcy” experience, HLB has a deep bench of seasoned lawyers who counsel clients on loan workouts, lease restructuring, financing transactions, and litigation in the restructuring context. This experience includes negotiating and finalizing rent abatement and rent modification agreements, forbearance agreements, and the purchase and sale of financially distressed assets. HLB also has a history of successfully partnering with other bankruptcy counsel where appropriate for the client’s needs.

Our Health Care Financial Restructuring Practice Group is a multi-disciplinary team that includes both litigators and transaction lawyers who work closely together to help our clients achieve their goals. Most HLB attorneys are also regulatory lawyers, which often allows HLB to outperform client expectations regarding speed and efficiency. Our clients include every conceivable type of health care provider, supplier or related organization, including health systems and hospitals, medical groups and independent practice associations (IPAs), ambulatory surgery centers (ASCs), home health agencies, skilled nursing facilities (SNFs), pharmacies, health plans and practice management companies.

HLB’s health care financial restructuring clients choose to work with us for the same reasons as our other clients: HLB delivers unparalleled health care expertise and the ability to navigate the interplay between business needs and multiple regulatory frameworks.

Representative Matters handled by HLB's Health Care Financial Restructuring Team Members:

  • Represented the buyer of two operating hospitals in Los Angeles in a Section 363 bankruptcy sale as part of the Promise Healthcare chapter 11 case in Wilmington, Delaware.
  • Represented a large, quasi-governmental behavioral health provider as outside general counsel, and worked in close collaboration with bankruptcy counsel, as a debtor-in-possession in connection with a chapter 11 filing and associated transactional and regulatory matters.
  • Represented a financially distressed supplier and its parent company in the negotiation of numerous workout and restructuring agreements with creditors culminating in the sale of substantially all of the assets of the supplier.
  • Represented a community hospital as healthcare regulatory counsel in the administration of a chapter 11 case in Los Angeles.
  • Successfully defended payroll service company against preference recovery complaint filed in chapter 11 case Delaware. Creditors’ committee sought over $300,000; negotiated a settlement to pay less than 6% of the amount demanded.
  • Successfully defended preference and fraudulent conveyance claims made by creditors’ committee and asserted secured claims of former hospital management company in chapter 11 case of a hospital, filed in California.  The matters were settled on favorable terms including full payment of client’s reduced secured claim and no liability for preference or fraudulent conveyance claims.
  • Successfully challenged liquidating trustee’s attempt to obtain post-confirmation royalty payments due to reorganized debtor, from being used to pay creditor claims, in chapter 11 case filed in New York. Resulted in published decision.
  • Represented health care provider tenant in navigating landlord’s loan forbearance, bankruptcy and subsequent restructuring in connection with bankruptcy workout related to multi-million dollar proton treatment center facility.

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