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Curative Health Services Case Study
Ensuring Financial Health for a Better Tomorrow
Background
As a provider of specialty health care management services, Curative Health Services owns and operates community-based branch pharmacies across the country with multi-disciplinary health care professionals at each location to meet the needs of local patients. The company also pioneered the wound-care management industry with the establishment of a business unit that partners with hospitals to implement effective, patient-oriented wound care treatment programs and protocols.
Due to increased market challenges within the health care industry, Curative Health Services made the strategic decision to undergo a formal corporate restructuring. With a total of 15 debtor entities, Curative filed for Chapter 11 protection in the Southern District of New York on March 6, 2006. Curative filed a pre-packaged restructuring, providing a Plan of Reorganization at the time of filing, to be voted upon by its major creditors in order to reduce restructuring costs and maximize recoveries for all stakeholders.
Results
In conjunction with a team of professionals from Linklaters and The Altman Group, KCC was engaged to support the balloting and solicitation process for the company's pre-negotiated Plan of Reorganization. KCC streamlined and coordinated the solicitation of five different voting classes using its proprietary web-based technology, KCC CaseView, which aggregates detailed information on creditors and equity security holders to help streamline the balloting and tabulation process. KCC's high-volume production facilities also played a key role in the printing and mailing of balloting materials during the voting process.
Based on its client-focused teamwork and technology systems, KCC supported an accelerated timeline for the balloting and solicitation process. The final Plan of Reorganization was accepted by creditors on May 22, 2006— less than three months after the company's bankruptcy filing date. Upon exiting Chapter 11 protection, Curative achieved its plan to restructure $185 million in bondholder debt in less than 75 days.
With a stronger balance sheet and greater access to capital through exit financing, Curative emerged from Chapter 11 protection as a privately held company under the name, Critical Care Systems International. The wound-care management business unit was renamed to Wound Care Centers and the company employs more than 1,300 professionals with locations across the country.
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