Community hospital—Merger resulting in bankruptcy avoidance

Represented a community hospital in its acquisition by a five-campus, out-of-state health system, which included consultant’s engagement, forbearance and debt counseling, definitive agreement negotiations, Hart-Scott-Rodino filing, CHAPA filings and court appearance, debt restructuring, and bond issuance. Rather than seeking bankruptcy protection, the hospital worked with us to find a merger partner and we handled all aspects of the health care and financial approvals necessary to close on the merger. This transaction notably included an application to the State Attorney General’s office for approval of the merger under the State’s regulatory scheme, the management of the defaulted bondholder and the related negotiation of the defaulted debt, the treatment of trade payables, and the issuance of replacement debt. As a result, the hospital avoided a costly and lengthy bankruptcy process and was able to continue serving its community.