Health Care Financial Restructuring
Financial distress is nothing new to the health care industry. Unfortunately, with each passing day the downward trend in health care reimbursement makes the problem more acute. Katten has a history of addressing the full range of issues that financially distressed health care businesses encounter. Whether we are representing health care businesses, lenders, lessors or equity sponsors, we have the skills and experience needed to work through financial challenges and develop creative transactional and/or litigation solutions.
Health care is one of the most heavily regulated industries within the U.S. economy and presents restructuring challenges normally not encountered in other industries. Our attorneys face these challenges with a unique synthesis of experience in bankruptcy and restructuring, health care regulatory, corporate and finance. We are familiar with the models that many health care businesses are based upon and how the deals have been structured. As a result, we are positioned to quickly identify “problems” and advise health care clients on strategies for dealing with a financially distressed situation or restructuring.
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Acquisitions of businesses and assets out of bankruptcy
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Business model re-design, with corresponding regulatory and reimbursement analysis, for businesses going through recapitalizations and/or restructurings
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Corporate governance counsel for financially distressed health care businesses including counsel related to fiduciary obligations to creditors
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Creditor representation for lenders and vendors of bankrupt businesses
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Debtor counsel on behalf of bankrupt businesses including negotiation of debtor-in-possession financing and transaction of business and asset divestitures
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Financial covenant compliance and restructuring counsel for financially troubled borrowers under tax-exempt financing
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Reimbursement counsel, particularly at the nexus of bankruptcy law and Medicare and Medicaid regulations
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Restructurings of debt- and lease-based financings, with and without equity components, on behalf of health care providers, businesses, lenders, lessors and equity sponsors
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Sale of nursing home chain in bankruptcy. Represented a national lender as secured creditor in the sale of six nursing home facilities out of bankruptcy to a nursing home management company.