National Health Care Cases Survive BAPCPA
by: David N. Crapo
Gibbons P.C.; Newark, N.J.
Health Care Committee Members Paul Rundell and Bobby Guy advise of 10 jointly administered cases before the U.S. Bankruptcy Court for the Middle District of Tennessee (Middle District) in which the debtors prevailed over arguments by the U.S. Trustee for Region 8 (UST) to the effect that BAPCPA effectively eliminated national health care cases. In those 10 cases, Nashville Senior Living LLC and nine other senior living affiliates of a large national senior living company filed chapter 11 petitions. The debtors owned or operated senior living facilities in Tennessee, North Carolina, South Carolina and Oregon. The UST opposed the debtors' motion for joint administration of the ten cases and filed a motion to transfer the venue of the cases to multiple districts, keeping the Nashville case in Tennessee but sending all the affiliate cases to the home courts where the debtors' long term care facilities were located.
The Utilization of §363 Sales in the Health Care Industry
by: David O. Ford
General Capital Partners; Denver
Bankruptcy Code §363 asset sales are becoming an increasingly attractive method employed by companies in the health care industry to monetize assets. My firm has seen the impact in our own caseload with three diagnostic imaging facilities (DIFs) we are advising recently utilizing 363 sales.
Under §363(b) (1) of the Code, a chapter 11 trustee or debtor-in-possession (DIP) may sell the bankruptcy estate's assets free and clear of most liens or other encumbrances. This aspect of the 363 sale, as well as the sheer speed of the process, is appealing to potential buyers who might otherwise harbor concerns of obtaining clear title to the property they wish to acquire. The caveat of obtaining clear title is that, in most cases, the buyer agrees to take the assets on an as-is, where-is basis.
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, Ariz.
December 4-6, 2008
Committee Members are urged to attend the Winter Leadership Conference at the Westin La Paloma Resort & Spa in Tucson, Ariz. Attending the conference is a great way to spend time with your colleagues in various aspects of the bankruptcy practice. A superb panel on health care issues, "Coast-to-Coast: A Cross-Country Examination of Current Trends in Health Care," is planned for Friday, December 5 at 9:30 a.m. The outstanding panel includes Ted Berkowitz of Farrell Fritz, Patrick M. Hurst of Houlihan Lokey, Randye B. Soref of Buchalter Nemer, and Burton S. Weston of Garfunkel, Wild & Travis. Especially in light of the recent happenings on Wall Street and in Washington, D.C., attending this Health Care panel is a must for health care practitioners who want to compare notes with colleagues from other parts of the country.