Distressed Medical Facilities: A Guide to Section 363 TransactionsPDF
Laura Heyne's article, "Distressed Medical Facilities: A Guide to Section 363 Transactions," was published in Bloomberg BNA on August 28, 2014.
From the article...
"Section 363 transactions—while you may have heard of them, you may not fully understand the power and benefits these transactions can provide. Medical facilities, including skilled nursing homes, urgent care centers, doctor’s offices, assisted living facilities, and others in the health care industry, have faced a recent surge in Chapter 11 bankruptcy filings. High initial operating costs in conjunction with a lack of capital and operating losses have left many medical facilities with few options, short of selling off assets to pay multiplying creditors. As a result, 363 sales are an attractive option for both the distressed entity and potential buyer. This article will explore the function of a 363 transaction, as well as the process, strategies and concerns involved in acquiring distressed medical facilities through Chapter 11 bankruptcies."