A variety of conditions may be conspiring against businesses in certain segments of the health care industry.  These include reduced patient census at skilled nursing and other long-term care facilities, COVID regulations that limit the ability of providers to give (or patients to receive) various forms of treatment and patients choosing to delay lucrative elective procedures, or even to forego health and dental care altogether.  In addition, Congress passed and President Trump enacted into law the No Surprises Act, which went into effect on January 1, 2022 and will have a profound impact on health care service providers across the country.  Individually, or in combination, these and other adverse market conditions have the potential to wreak financial havoc on health care businesses.

When financial distress afflicts one of its borrowers, private credit lenders must act quickly to maximize the prospects for recovering their capital.  In this alert, we discuss five of the most significant challenges for private credit lenders in addressing a distressed health care borrower.

Read the full alert.

Tags: COVID-19, No Surprises Act, Private credit
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Photo of Ryan P. Blaney Ryan P. Blaney

Ryan Blaney represents health care, life science, and technology clients in a range of regulatory, enforcement, internal investigative and transactional matters, with particular expertise in privacy law, life sciences and digital health. He also has expertise in regulatory compliance, counseling clients on a…

Ryan Blaney represents health care, life science, and technology clients in a range of regulatory, enforcement, internal investigative and transactional matters, with particular expertise in privacy law, life sciences and digital health. He also has expertise in regulatory compliance, counseling clients on a range of matters, including health care fraud and abuse, third party reimbursement, data breach issues, data privacy and security, and FDA regulatory matters. He has substantial experience in pharmaceutical lifecycle management and competition issues, including the Hatch- Waxman Act and Biosimilars Price Competition and Innovations Act.

Ryan serves information technology companies, public and private health care companies, hospitals and physician organizations, manufacturers, medical device companies, and health plans. He guides venture capital groups, private equity funds, investment banks, and other investors on health care regulatory issues in connection with financing, mergers and acquisitions, and restructuring.

Ryan’s work is greatly informed by his experience as a teacher. Prior to attending law school, Ryan earned a master’s degree in education and taught at an under-resourced Catholic middle school. He is known for his ability to communicate clearly and to coordinate large teams working on complex matters. Outside of his health law practice, Ryan has been repeatedly recognized for his public service and pro bono work. He has successfully handled numerous education-related cases, helped establish three nonprofit organizations and defended qualified recipients of disability benefits.

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Photo of Charles Dale Charles Dale

Chad Dale is a partner in Proskauer’s Corporate Department and a member of both the Business Solutions, Governance, Restructuring & Bankruptcy and Private Credit Restructuring Groups.

Chad has nearly 30 years of experience in corporate reorganizations and debt restructurings. As a member of…

Chad Dale is a partner in Proskauer’s Corporate Department and a member of both the Business Solutions, Governance, Restructuring & Bankruptcy and Private Credit Restructuring Groups.

Chad has nearly 30 years of experience in corporate reorganizations and debt restructurings. As a member of the Private Credit Restructuring Group, Chad’s practice focuses on direct lenders and ad hoc groups of direct lenders, hedge funds and BDC’s. He also represents troubled companies, equity sponsors, creditors’ committees, trustees and receivers in complex out-of-court debt restructurings and formal insolvency proceedings. Chad has also served as a court appointed chapter 11 trustee and frequently represents purchasers of financially distressed businesses. Chad offers extensive experience handling debt restructurings, reorganizations and distressed asset transactions.

Recognized by Chambers USA in Band 1 of its rankings, market sources have noted that Chad is “an incredibly accomplished attorney with great presence.” He is a fellow of the prestigious American College of Bankruptcy and has been recognized as one of the top 100 lawyers in New England since 2008.

Chad has written and presented articles on a wide range of matters including debtor-in-possession financings, the reorganization of professional sports franchises, intellectual property licensing in bankruptcy, executory contracts, director and officer liability insurance and income and property taxation in bankruptcy.

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Photo of Vincent Indelicato Vincent Indelicato

Vincent Indelicato is a partner in Proskauer’s Corporate Department, and a member of both the Business Solutions, Governance, Restructuring & Bankruptcy and Private Credit Restructuring Groups. His practice focuses on corporate restructurings, with an emphasis on the representation of direct lenders, ad hoc…

Vincent Indelicato is a partner in Proskauer’s Corporate Department, and a member of both the Business Solutions, Governance, Restructuring & Bankruptcy and Private Credit Restructuring Groups. His practice focuses on corporate restructurings, with an emphasis on the representation of direct lenders, ad hoc groups, bondholders and creditors’ committees both out of court and in chapter 11. He is frequently consulted by leading distressed hedge funds, BDCs, private credit lenders, private equity investors and creditors on complex domestic and international insolvency and restructuring issues, including intercreditor and interlender matters, across a variety of industries. Vincent is also part of the Firm’s cross-disciplinary, cross-jurisdictional Coronavirus Response Team helping to shape the guidance and next steps for clients impacted by the pandemic.

Vincent has been recognized by the American Bankruptcy Institute for his “formidable courtroom presence with natural dealmaker instincts” as a recipient of the 40 Under 40 Award, and an Outstanding Young Restructuring Lawyer by Turnaround and Workouts. Chambers USA, America’s Leading Lawyers for Business describes Vincent as “incredibly thoughtful” and “a smart practitioner,” who “lobbies hard for his clients” and “is aggressive in his approach, but practical when it comes to dealmaking.” The Chief Executive Officer of a client recently told Bloomberg Law that “his mind is automatically strategic. And in tough situations, he never goes on defense. He has the ability to manage multiple personalities and temperaments to get them focused on the end game.” Reorg, one of the most widely-followed publications in the distressed investing community, also selected Vincent as the inaugural guest of its Professional Spotlight podcast.

Over the last decade, Vincent has played a lead role in some of the most significant corporate reorganization cases in the United States. These include his representation of the Statutory Committee of Unsecured Claimholders in the chapter 11 cases of Caesars Entertainment Operating Company Inc., which filed for bankruptcy with more than $18 billion of funded debt; the Los Angeles Dodgers in their $2 billion acquisition by Magic Johnson and Guggenheim Partners; Brookfield Asset Management in the $2.5 billion debt restructuring of Kerzner International’s Atlantis Bahamas Resort; and J.P. Morgan and other substantial creditors in the chapter 11 cases of MF Global, a financial services company with $41 billion in assets.

Vincent has been widely recognized in the restructuring community as a thought leader. He writes frequently on restructuring topics, and his writing has been featured in, among other publications, The Wall Street Journal Bankruptcy Pro, The American Bankruptcy Institute Journal, Law360 and The Bond Buyer. He has also assisted Martin Bienenstock as an Adjunct Professor of Corporate Reorganization at both Harvard Law School and Michigan Law School.

He serves as a member of the American Bankruptcy Institute’s Views from the Bench Advisory Board, the Federal Bar Counsel Bankruptcy Litigation Committee and is a Term Member of the Council on Foreign Relations. Vincent was selected to participate in the National Conference of Bankruptcy Judges NextGen Program, and also serves as a Member of the Harry S. Truman Scholarship Leadership Council.

A Harry S. Truman Scholar, Vincent graduated from University of Michigan Law School as commencement speaker. Prior to law school, he served as the Special Assistant to United States Senator Charles E. Schumer and worked as a personal aide to John C. Whitehead, former chairman and senior partner of Goldman Sachs. He also led a team of entrepreneurs to bring the world’s first hybrid taxicab to New York City.

Vincent graduated with an English degree from Haverford College, where he served as president of the student body and was one of 16 college students from the United States to be selected as a Goldman Sachs Global Leader. He was a visiting student of English at Pembroke College, Oxford University. A native New Yorker, Vincent attended Regis High School, a tuition free private high school for young men who demonstrate superior intellectual and leadership potential.

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