What Should Companies & Restructuring Professionals Know Amid Increased Healthcare Provider Bankruptcies? Healthcare providers face many pressures, including costs associated with regulatory compliance and necessary technological and infrastructure investments. In fact, a PwC report showed a 68% increase in healthcare bankruptcies, with more predicted throughout 2024. It’s important to understand that healthcare restructurings can have unique challenges, which will be discussed below. Healthcare Providers Still Face These Special Issues Among the many factors impacting healthcare providers is the shift to bundled payments for insurance reimbursements. Under the Affordable Care Act […]

Creditors looking to pursue a collections action should understand how Chapter 7 and Chapter 13 bankruptcy processes can affect efforts to collect.

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In Installment 5, we walked through the lifecycle of a hypothetical traditional chapter 11, and in Installment 6 we discussed key concepts you must comprehend in order to understand any chapter 11 case. Now we pull the camera back and turn our focus away from chapter 11 specifically, to look more broadly at the options available to a company (that is, a “debtor”) and to its various constituents (e.g., creditors and equity owners) when that company is experiencing financial distress so […]

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In the last two installments of this series, we introduced you to things a company should consider before deciding whether to file chapter 11, and a timeline for understanding how a “typical” chapter 11 case proceeds. In this quick little ditty, we want to make sure you understand four concepts that permeate every chapter 11 case except, perhaps, a prepack. 1. The Automatic Stay When a bankruptcy case is filed, an “automatic stay,” is triggered under Bankruptcy Code § 362. The automatic […]

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. QUESTION: How do I know if I should request relief from a debtor’s automatic stay? ANSWER: What is the Automatic Stay? Section 362 of the Bankruptcy Code provides for the automatic stay. The automatic stay, triggered immediately upon the debtor’s filing of a bankruptcy petition, bars nearly all actions against the debtor and its property, including actions to exercise […]

A written tour of business bankruptcy and its alternatives Editors’ Note:  If you are a regular reader of this column, you will know that this is the third installment in a row about the automatic stay (it is a big topic and we didn’t want to lay too much on you at once).  If you’re growing bored of the topic, don’t despair, as our next installment will pan the camera back a bit and give you a flavor for how litigation in bankruptcy court works more generally. We’ll spend a […]

A written tour of business bankruptcy and its alternatives Our most recent installment in this series gives an overview of the automatic stay. In this installment we dive a little deeper, and we start with this question:  how do you know when a contemplated action would violate the stay and, thus, require stay relief before the action is taken? Consider these examples: a plaintiff believes that its lawsuit relates wholly to post-petition conduct, but the debtor alleges that it is based on pre-petition events; a creditor believes that it is exercising […]

A written tour of business bankruptcy and its alternatives We discussed the automatic stay from the perspective of a secured creditor in Installment #9 of this series.This time we pan the camera back and look at the automatic stay from a broader and more general perspective. It is sometimes said that the two primary objectives of chapter 11 are to maximize the going-concern value of the bankruptcy estate and to assure equality of distribution among similarly situated creditors. The automatic stay furthers both of these goals. It preserves going-concern value […]

A written tour of business bankruptcy and its alternatives Our prior installment discussed some of the basic things a secured creditor needs to know about Chapter 11. The automatic stay was one of them.  But, since we like to keep these things short (on the presumption that others also have short attention spans) we didn’t say all we want to say on the topic (in fact, this installment won’t satiate us either and we will continue to explain other aspects of the automatic stay in future installments). For now, we […]

A written tour of business bankruptcy and its alternatives In our past few installments we’ve been approaching our topic in a more or less chronological manner, explaining what generally happens first, second, third, and so on. We think it useful to switch convention and spend this and the next few installments talking about things from the perspective of specific players. This time, we focus on the secured creditor. What/who is a secured creditor?  Examples include (there are other possibilities): The holder of a real estate mortgage A bank with a […]