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...
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...
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...
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...
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...
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...
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-...
COVID-19 and its resulting economic impact have taken a destructive toll on society. At its core, the pandemic has been a health crisis, so, not surprisingly, healthcare has been one of the sectors of the economy that has been most severely impacted. Societal measures to “flatten the curve,” such...
Managing through uncertainty is a constant for healthcare operators. For years, healthcare companies have faced disruption related to reimbursement rate cuts or new market entrants. However, the impact of COVID-19 is creating a new kind of stress across various sectors in the healthcare industry...
With each passing day, turnaround advisors, bankruptcy attorneys, and other supporting professionals answer the call as more and more businesses fight for their lives. Some of these businesses will implode from the pressures of the coronavirus crisis, while others will nimbly pivot and thrive with...
