CROs Adapt to Limits on On-Site Presence
Can a chief restructuring officer (CRO) continue to be an effective and efficient resource for lenders in this new normal environment? The short answer is “absolutely.” But the longer answer is complicated. Workouts of lenders’ distressed credits aren’t going away, and in fact, they most likely...
Getting the Deal Done, Even During a Pandemic
As a result of the COVID-19 pandemic, most people have had to adjust to the new normal of working remotely. Most nonessential offices and businesses began shutting their doors in mid-March. The uncertainty of so many different facets of everyday life being turned upside down was stressful to many,...
Winners and Losers
The COVID-19 pandemic has created winners and losers, often penalizing and benefiting entire industries on the basis of how their respective operations, products, and services fit into the new business environment. This phenomenon poses a challenge to business leaders sifting through myriad factors...
Remote Bankruptcy
The COVID-19 pandemic has wreaked havoc on large portions of the American economy. Small and mid-size businesses have felt the greatest impact, because they generally have less cash flow and access to capital markets that can allow a company to weather a severe business interruption like that...
Subchapter V
Most middle market lenders probably paid little attention when the Small Business Reorganization Act (SBRA)—popularly known as Subchapter V, referring to the new Subchapter V of Chapter 11 of the Bankruptcy Code—took effect in February 2020. Only businesses with combined secured and unsecured debts...
What Lenders Expect  from Borrowers Battered  by COVID-19 Fallout
The COVID-19 pandemic has created a seismic shock to the economy, slowing and in many cases stopping the gears of commerce. The resulting drop in demand for products and services has been dramatic, with U.S. GDP contracting 33% in the second quarter of 2020. This, in turn, has given rise to an...
Medicare, Medicaid Provider Agreements May Transfer Free and Clear in Bankruptcy
There are significant benefits to a healthcare entity selling assets in bankruptcy, particularly with respect to the transfer of its Medicare or Medicaid provider agreements. A commonly held view 1 is that bankruptcy offers little use to healthcare entities reliant on Medicare or Medicaid payments...
How THG May Alter the Landscape in Healthcare Provider Bankruptcies
The Bankruptcy Court for the District of Delaware on August 29, 2019, decided In re THG Holdings LLC, 604 B.R. 154 (Bankr. D. Del. 2019). In THG , Judge John T. Dorsey ruled that the automatic stay of U.S. Bankruptcy Code Section 362 precluded a postpetition continuation and reversal of a...
Illustration of bar graph with Stethoscope and dental tools
Between 2015 and 2020, private equity firms made more than 75 platform investments in physician practice management companies (PPMs) and more than 50 platform investments in dental service organizations (DSOs). This investment frenzy was driven by private equity’s desire to deploy its $1.5 trillion...
Illustration of Doctor Holding shield. Title: Sustaining Healthcare Providers Through the Pandemic
While healthcare generally represents a bright spot in a teetering U.S. economy, COVID-19 has demonstrated that healthcare providers are not immune to the financial pressures associated with the pandemic. As COVID-19 began to spread beyond China and Italy, U.S. hospitals, physician practices, long-...