Thomas Health Emerges From Bankruptcy, Keeps Hospitals Open

California consulting firm Force 10 Partners facilitated impressive nine-month turnaround

NEWPORT BEACH, Calif.–(BUSINESS WIRE)–At a time when hospitals are hardest hit, needed most, and trying to survive through mergers that decimate staff and services, Thomas Health will emerge from bankruptcy with no reductions in patient care.

The West Virginia-based nonprofit beat the odds by bringing in Southern California-based advisory firm Force 10 Partners, which restructures and revives challenged businesses.

“Above all else, Force 10 really focused on the interests of our stakeholders – our patients, employees, and the Charleston/South Charleston community at large. Not only did Force 10 help us with a strategy that resulted in a massive reduction of our debt load, Force 10 ensured we met the administrative burdens of a complex Chapter 11 case. Force 10’s ‘cut to the chase’ negotiating style greatly influenced our ability to get this deal done. We will value our relationship with Force 10 and their advocacy for us is mutual,” said Dan Lauffer, the healthcare group’s President and CEO.

To consummate the Plan of Reorganization, Thomas Health privately placed $60.1 million in Refunding Revenue Bonds. The reorganization reduced its secured, non-mortgage debt from over $140 million to $60.1 million, eliminated its $75 million pension burden and paid unsecured creditors a healthy dividend. Further, Thomas Health now has fewer restrictions on its ability to purchase capital equipment to advance medical care.

“The Force 10 team is technical, strategic and no-nonsense. They teamed with my finance group by jumping right in and generating strong work product and advice, which resulted in a successful Chapter 11,” said Tim Skeldon, Thomas Health’s Chief Financial Officer.

“Thomas Health is a very important client,” said Adam Meislik a Partner at Force 10. “When COVID-19 struck, we left West Virginia and went home to California to work with even more conviction. We rode shotgun while elective surgeries were halted, and the CARES Act was implemented. Through everyone’s dedication and hard work, Thomas Health emerged stronger than ever with a balance sheet to match.”

Also assisting with the rapid, nine-month process was lead bankruptcy counsel Whiteford Taylor & Preston, LLP; local bankruptcy counsel Frost, Brown Todd, LLP; SOLIC Capital Advisors, LLC as investment banker; Jackson Kelly PLLC as bond counsel and Omni Agent Solutions as claims and noticing agent.

Force Ten Partners, LLC, based in Newport Beach, Calif., is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, valuation, forensic accounting, complex litigation support, and computations involved in court proceedings and dispute resolution. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals in roles including financial advisor, interim manager, fiduciary services, expert witness, financier, and M&A advisor.

Contacts

Jonathan Fitzgarrald

(310) 601-6008

[email protected]

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