Secured lender representation $160 million loan secured by four long term care facilities located in Germany. Recovered deficiency claim on sale of German collateral, through implementation of liquidity trust of 20 properties located across the United States and Canada to secure deficiency. Coordinated negotiations on behalf of lender group with borrowers’ United States parent. Negotiated and implemented loan restructure, including creation of collateral trust, guaranteed minimum distributions from sale of new collateral and remainder notes.

Represented secured lender holding $50 million loan secured by six long term care facilities located in Pennsylvania, including CCRC campus. Secured confessed judgment and commenced foreclosure proceedings. Negotiated the restructure of both securitized and non-securitized loan obligations with borrower to avoid Chapter 11 bankruptcy filing; documented loan restructure including take-out of bond holders, extended maturity dates and variable rate terms; collapsed securitized trust; oversaw take-out of working capital lender and ultimate payoff of loans.

Industry Overview

Overview

The Baker Donelson Health Care Bankruptcy and Distress Team has over 30 professionals with active health care distress experience. Over the past 25 years, the professionals on Baker Donelson's Health Care Bankruptcy and Distress Team have handled more than 75 distinct matters involving distressed health care entities with property located in more than 30 states worth over $2.2 billion.

Our team includes professionals in the bankruptcy, health care, real estate, regulatory, litigation and tax arenas. Together, we offer clients the kind of deep experience that's necessary in the midst of a defaulted loan or other financial difficulty. In addition, the team is supported by one of the nation's most recognized health law practice groups.

We oversee all aspects of lender representation in health care defaults, which includes documenting loan modification and restructuring, addressing regulatory and survey issues, addressing intercreditor issues with working capital lender, dealing with reimbursement problems, and resolving various title issues with real estate. We routinely litigate in bankruptcy, receivership, foreclosure and lender liability, in actions involving health care facilities across the country.

We also routinely represent acquirers of distressed health care entities through note purchase, 363 bankruptcy sales, Chapter 11 confirmed plans and orchestrated foreclosure sales.

Representative Matters

Secured lender representation $160 million loan secured by four long term care facilities located in Germany. Recovered deficiency claim on sale of German collateral, through implementation of liquidity trust of 20 properties located across the United States and Canada to secure deficiency. Coordinated negotiations on behalf of lender group with borrowers’ United States parent. Negotiated and implemented loan restructure, including creation of collateral trust, guaranteed minimum distributions from sale of new collateral and remainder notes.
Represented secured lender holding $50 million loan secured by six long term care facilities located in Pennsylvania, including CCRC campus. Secured confessed judgment and commenced foreclosure proceedings. Negotiated the restructure of both securitized and non-securitized loan obligations with borrower to avoid Chapter 11 bankruptcy filing; documented loan restructure including take-out of bond holders, extended maturity dates and variable rate terms; collapsed securitized trust; oversaw take-out of working capital lender and ultimate payoff of loans.
Counsel for debtor in the Chapter 11 case for Saint Mary Hospital (which was founded in 1864 and operated by the Franciscan Health System in Philadelphia); the hospital property was sold, cleared of asbestos, subdivided and converted into low-income apartments for seniors and an adult day health care center.
Represented secured lender holding $47.9 million bonds secured by a hospital in Alabama. Implemented restructure of bond obligations, including extensive negotiations with health care authority and creditors to preserve lender position and financial viability of hospital.
Represented purchaser of a CCRC campus in Chapter 11 bankruptcy auction in Toledo, Ohio. Negotiated and litigated bid procedures and auction structure pre-bankruptcy due to bondholders' inability to organize sale outside of bankruptcy. Prepared and finalized stalking horse asset purchase agreement. Represented purchaser at auction, and negotiated with third-party payors and licensing agency regarding purchase, change and closing of transaction.
Represented secured lender on $12 million loan secured by four long term care facilities in Chapter 11 bankruptcy pending in Austin, Texas. Litigated cash collateral issues, unauthorized merger of subsidiaries into parent, and priority dispute with working capital lender; prepared competing plan of reorganization to ensure sale of facilities through bankruptcy auction; negotiated subsequent joint plan; auction to secure payment of principal balance; and litigated with guarantor regarding deficiency and exemptions.
Represented secured lender holding $3.2 million loan secured by long term care facility in Chicago, Illinois. Secured appointment of receiver; litigated guarantor liability; and negotiated sale of property at receiver-led foreclosure sale of assets.
Represented note purchaser of a $17.8 million defaulted loan secured by CCRC located in Seattle, Washington. Coordinated negotiation with note seller on purchase; restructured loan documents with borrower; and handled governmental approvals to facilitate purchase.