Health Evolution Partners Secures MacKeyser DIP Facility
MacKeyser Holdings announced that the company and certain of its subsidiaries have filed voluntary Chapter 11 petitions in order to facilitate the ultimate liquidation of the company. According to bankruptcy court documents, Health Evolution Partners Fund secured the DIP facility for MacKeyser.
The filing will allow the company to wind down its businesses in an orderly and expeditious fashion for the benefit of its stakeholders. The petition was filed in the United States Bankruptcy Court for the District of Delaware in Wilmington.
The company is in the process of transitioning certain medical practices to their physician partners or other providers and otherwise maximizing value for its stakeholders. Continuity of care remains the top priority at all practices. The company will also complete the closure of its unprofitable locations, which has already begun.
The liquidity crisis that precipitated the filing was the culmination of various factors including a non-strategic acquisition strategy, unsustainable costs of practice integration, electronic medical records implementation, and general mismanagement. In addition, upon the discovery of significant accounting irregularities, the Board of Managers launched an investigation, which led to the termination of the company’s former CEO and former COO. On June 6, Thomas J. Allison was appointed to the Board of Managers and as chief executive officer.
Allison said that while the decision to file Chapter 11 was a difficult one, it became clear after reviewing various options that it was in the best long-term interest of the company’s stakeholders.
“By availing ourselves of the Chapter 11 process, we believe we can maximize the value of the business and its assets for the benefit of all creditors. We are working with our doctors and other partners to transition through this period efficiently, with minimal interruption to patient care,” Allison said.