Options and Opportunities: Section 363 Transactions for Distressed Healthcare Companies
A recent report issued by Alvarez & Marsal found that more than half of the 4,500 hospitals analyzed are "technically insolvent or at risk of insolvency." As market turmoil makes capital elusive, most markets, including various sectors of the healthcare industry, will likely see an accelerated rate and number of business failures, restructurings, and, in some cases, closures. But between distress and liquidation lies opportunity. This week, J. William Morrow and Eric Schultenover, partners with Waller Lansden Dortch & Davis, describe the basics of a bankruptcy filing process, as well as the process of selling a healthcare facility that's in bankruptcy.