Healthcare Insolvencies

We have been heavily involved in the bankruptcies of healthcare providers. Most recently, we guided six nursing home facilities, four in Pennsylvania and two in Massachusetts, through a complicated reorganization process that involved the sale of assets in both a Section 363 sale and under the plan of reorganization. Agreement on the terms of a plan was only reached after the presiding Judge referred the parties to one of his colleagues on the bench for a six-day mediation session. The plans that came out of that agreement required seven affiliated real estate companies to file bankruptcy and their proceedings had to be swept into our clients’ proceedings and resolved simultaneously with ours. Funding for the plans came in part from a governmental entity, which did not commit to providing the funds until the night before the confirmation hearing.

We guided a Pennsylvania continuing care retirement community with a 180-bed nursing facility, 60 personal care beds and 50 independent living units through the bankruptcy process. Our lawyers reorganized a non-profit corporation which owns a 178-bed acute care hospital in Philadelphia. We reorganized a life care community consisting of 320 residential units and a 120-bed nursing home. Our lawyers represented the largest secured creditors in the Chapter 11 proceedings of two nursing homes in North Philadelphia and a hospital in center city Philadelphia. Our lawyers represented the successful proponent of a creditor plan of reorganization for a large life care community located just outside Philadelphia. We represented the bondholders of a three hospital system in Chapter 11 in Philadelphia. We represented the Co-Chair of the creditors committee in the largest healthcare insolvency in United States history. We also recently confirmed a Chapter 11 plan for an acute care hospital located outside of Philadelphia.