Gordon Rees Scully Mansukhani Raleigh health law attorneys Robert Shaw and Justin Puleo, with great assistance from paralegal Todd Yoho, successfully closed a deal on December 1, 2017 on behalf of a New York-based private equity client. The client acquired a distressed Southwestern home health and skilled nursing services company with significant annual revenue but an unsustainable debt situation.
An important aspect of the deal involved negotiations to relieve the sellers of their multi-million dollar debt. Sellers had taken out two substantial loans which had the effect of the major creditor essentially owning the target company through its right to take over management in the event of a default. The team assisted the client in negotiations with both the major creditor and the sellers, which resulted in 90 percent of the loan being written off.
In addition, the deal also involved sophisticated transactional health care issues involving licensure, compliance, and other concerns. Peter Ente of the Orange County office provided important assistance in tax structuring and Andrew Scott of the Houston office provided invaluable guidance on corporate issues. The client is currently in negotiations to acquire another Southwestern company with $35 million in annual revenue and will be using Gordon & Rees in the deal.