An imaging center in the southeast was having difficulties paying its expenses and more importantly making payroll. The facility had experienced enormous growth and could not meet the financial pressures resulting from the increased business. With a threat of repossessing their leased imaging equipment, the center contacted its attorney to see advice. The attorney saw that the company was “paper profitable” but was tied up in cash flow due to slow payments from carriers and Medicare. The provider was painted into a corner with literally no way out. Time was their biggest obstacle.
The attorney used the only means possible to keep the business running and to keep the creditors at arms length. The attorney filed Chapter 11 to reorganize and keep the business going. A significant part of the plan was to use the services of a factor to bring all cash forward to make, at least, an initial down payment on the already delinquent creditor accounts. The attorney worked closely with the factor to set up the factoring facility and to establish the strategies needed to satisfy the terms of the reorganization plan.
Xynergy Healthcare Capital has worked closely with attorneys in order to facilitate reorganization strategies and to successfully exit from bankruptcy in a stronger financial position.
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