Irvine, CA – October 10, 2024 – Force 10 Partners, a leading financial advisory firm, today announced the successful completion of its engagement as the financial advisor to KPC Promise and its subsidiaries, a healthcare organization that operated long-term acute care hospitals (LTACHs) and skilled nursing facilities (SNFs). Force 10’s expertise was instrumental in guiding KPC Promise through a complex restructuring and operational transition, ensuring continued patient care while maximizing stakeholder value.
KPC Promise faced significant financial and operational challenges due to market conditions, regulatory hurdles, and liquidity constraints. Force 10 developed and implemented a comprehensive restructuring strategy, including establishing receivership entities for facilities in Texas and Kansas, interim management and asset purchase agreements with American Advanced Management (AAM) for facilities in Arizona, Louisiana, Utah, and Texas, and Assignments for the Benefit of Creditors (ABC) for the parent company and non-receivership subsidiaries.
“We are proud to have played a critical role in stabilizing KPC Promise’s operations and facilitating a successful transition,” said Adam Meislik, Partner at Force 10 Partners. “Our team’s deep restructuring expertise, commitment to stakeholder collaboration, and in-depth healthcare experience enabled us to navigate this complex engagement and achieve optimal outcomes for all parties involved.”
Key achievements of Force 10’s engagement include:
- Implementing a payor collection regime, benefiting secured lenders, KPC Promise, AAM, and the receivership entities
- Successfully negotiating with landlords, vendors, and secured lenders, balancing stakeholder interests and prioritizing patient care
- Arranging the orderly transition of operations despite significant vendor arrears while minimizing financial and operational risks
- Maintaining patient care and regulatory compliance throughout the restructuring process
Force 10’s successful advisory role in the KPC Promise engagement underscores the firm’s ability to provide innovative solutions to complex financial challenges and deliver exceptional results to clients in the healthcare industry and beyond.
Force Ten Partners, LLC, is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, fiduciary, valuation, forensic accounting, and complex litigation support. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals by providing turnaround-management services, fiduciary and financial advisory services, expert witness support, and investment banking services.