Case Studies

Selling 27 Real Estate Assets in a Receivership

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Selling 27 Real Estate Assets in a Receivership

The Situation

Healthcare Facilities. $18 million revenue. $5 million debt. Receivership.

  • Healthcare services provider incurred suspension of government reimbursement payments after receiving a federal subpoena for Medicaid fraud based on credible allegations relative to the company’s billings.
  • The company discontinued operations after it was unable to repay and implement corrective actions. All customers were transitioned to other care providers and employees were terminated without advance notice.

How We Advised

  • Our team was appointed Receiver to wind-down the business and sell all real estate.
  • Secured and stored customer health records, secured the property, resolved matters pertaining to employee claims and trust funds, and sold the assets and distributed proceeds to creditors.
  • We identified real and personal assets at 27 locations, solicited prospective buyers and sold all assets, with exception of one unsaleable property, over a period of six months. The single unsold real property was in such neglect and disrepair that it did not attract any offers; the Receiver ultimately abandoned the property through the court process.
  • A dispute arose regarding priority of payments between secured lenders, primarily related to the priority of Medicaid claim relative to secured debt. The matter ultimately was heard at the Iowa State Supreme Court, remanded to district court and ultimately settled through negotiations facilitated by our team.
  • The net recovery for the secured creditors achieved expectations of the initial budget.

Related Practice Areas

> Receiverships
Federal and state courts, creditors, and legal counsel choose our team to serve as Receiver of distressed businesses and real estate entities. We stabilize operations and cash flow, safeguard business assets, and pursue methods to maximize financial recovery. Our multidisciplinary team applies a wide breadth of restructuring and industry experience as Receiver to take control of companies facing financial, operational, and legal issues.

 

> Turnaround and Restructuring Services
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation.

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