Case Study

Interim Management

Durable Medical Supply Company

THE FIRE

A private equity owned $20 million medical equipment supplier with locations in Las Vegas, Tucson and Phoenix experiences operational and financial distress due to poor management practices, shoddy accounting and no employee accountability.

THE RESCUE

Provided financial and operational advisory services to the stakeholders, including advising to replace executive management.

Successfully implemented financial controls that allowed for on-going funding from secured lender.

Duration and nature of distress, that impacted reimbursements and cash flow, required the filing of Chapter 11.

Led bankruptcy and operational administration during initial 4 months of Chapter 11.

Undertook a review of operations to eliminate bottlenecks and led financial group dealing with significant cash collateral issues and highly recalcitrant lender.

Led effort and assisted bankruptcy counsel to timely and accurately complete 3 sets of debtors’ schedules and statement of financial affairs.

THE RESULT

Operations stabilized and successful bankruptcy 363(b) sale of the assets was completed.