SIT­U­A­TION

• Cap­stone Pedi­atrics (the ​“Com­pa­ny”) Mul­ti­spe­cial­ty Pedi­atric Pri­ma­ry Care group practice
• 2018 dis­tress with loss of state-fund­ed vac­cine pro­gram, mul­ti­ple oper­a­tional issues inher­it­ed from pre­vi­ous own­er and ongo­ing man­age­ment challenges
  
• Pre­vi­ous own­er did not adhere to stan­dard med­ical prac­tice admin­is­tra­tive cost bench­marks or com­pli­ance plan
  
• At Chi­ron engage­ment, the Com­pa­ny was neg­a­tive both EBIT­DA and Cash Flow 
  
• $9.5 MM of Debt: secu­ri­ties-based lend­ing, Bank ABL (A/R; equip­ment), Pay­roll Tax­es, AP, and For­mer Own­er (Promis­so­ry Note)
  
• Chi­ron engaged by the Com­pa­ny with Bank approval
  
• Bank­rupt­cy fil­ing with Chi­ron appoint­ed CRO at Lender insistence
  
• Goal: Improve oper­a­tions, Bank­rupt­cy Court restruc­tur­ing, refi­nanc­ing and recap­i­tal­iza­tion or sale
  

OUT­COME

• Assessed and iden­ti­fied key oper­a­tional chal­lenges and worked with state offi­cials and key providers to sta­bi­lize care and ser­vice provided
• Con­duct­ed a com­pre­hen­sive mar­ket­ing and sale process to both strate­gic and finan­cial buyers
• Suc­cess­ful­ly man­aged Com­pa­ny oper­a­tions and nav­i­gat­ed the Com­pa­ny through Chap­ter 11 and 363 sale to a strate­gic buyer