Daily News: October 9, 2017

Abraxas Leads Successful Turnaround of Behavioral Healthcare

Abraxas Group Founding Partner David Johnson, serving in the role of interim chief operating officer, led the successful turnaround and restructuring of a Chicago-area behavioral healthcare company active in adolescent residential treatment, adoption, clinical services and foster care.

The turnaround featured the orderly wind-down of two lines of business and the reorganization of the company’s shared services functions. Due to the rightsized cost structure, the company is on track for a six times year-over-year increase in EBITDA.

The restructuring featured a $10 million refinancing (including $2.5 million of new money), negotiation of deferred payment terms on $4 million of critical vendor payables, and the sale of numerous properties.

“This was 100% a team effort, and I was proud to be a catalyst and lead from the front with this great team of people,” Johnson said.

Abraxas Group is a boutique advisory firm focused on providing transformational leadership to middle market companies in transition.