Restora Healthcare announced it filed for Chapter 11 protection to recapitalize and reorganize its business. Restora’s secured lender, Healthcare Finance Group (HFG), will continue its support of Restora with court-approved funding for Restora’s payroll, suppliers, staff physicians and others during the bankruptcy. HFG will be providing DIP financing for the pendency of the case, and reached agreement with associated parties on a post-emergence loan package.
“The census across our two facilities is near all-time highs, and we will continue to provide best-in-class care for our patients in the greater Phoenix marketplace during the Chapter 11 process. Our talented and dedicated professionals will continue to be paid on normal payroll dates and patients will continue to be treated by Restora’s high-quality nursing and professional staff,” said George D. Pillari of Alvarez & Marsal Healthcare Industry Group, who is serving as chief restructuring officer.
Restora’s revenue-cycle management firm, Acuity Healthcare, agreed to invest new capital in the business and was contracted to provide management services upon emergence from the reorganization process.
Joining Acuity’s management efforts will be Tutera Senior Living & Healthcare, a specialist in skilled nursing facility management. Tutera will also be making an equity investment, as will Healthcap Partners, a long-time investor in the post-acute business.
It is expected that Restora will emerge from the Chapter 11 process in 60 to 90 days.