KPC Promise operates long-term acute care hospitals and skilled nursing facilities (SNFs) across multiple states (KPC Promise is not a subsidiary of KPC Healthcare)
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Force 10 spearheaded a comprehensive financial restructuring for this healthcare organization, which was grappling with severe liquidity constraints and substantial vendor liabilities.
Force 10 served as the financial advisor to KPC Promise, a healthcare organization operating long-term acute care hospitals and skilled nursing facilities. Confronted with severe liquidity constraints and significant vendor liabilities, KPC Promise engaged Force 10 to lead a restructuring that prioritized continuity of patient care and operational stability. A critical aspect of the engagement involved addressing extensive vendor and creditor issues, including managing arrears, renegotiating terms, and restoring essential supplier relationships to stabilize operations. Force 10 also advised on liquidity management, achieving a significant reduction in cash burn, which ultimately came within 95% of budgeted targets. Additionally, Force 10 addressed complex personnel matters, including managing employee self-insurance programs. The restructuring included transitioning facilities in Texas and Kansas to landlord-designated operators through stipulated state court receiverships and facilitating the sale of facilities in Arizona, Louisiana, Utah, and Texas. A cornerstone of the restructuring was the implementation of multiple California Assignments for the Benefit of Creditors (ABC), enabling an efficient wind-down of assets and resolution of creditor claims. Force 10 also established interim management agreements, shared services agreements, and a payor collection regime that ensured compliance with secured credit agreements, resulting in paying back first lien claims.
