Physicians Specialty Hospital of El Paso

Client

Bridge was hired to provide a Chief Restructuring Officer, Interim CFO and restructuring consultants to Physicians Specialty Hospital of El Paso (“PHE”) in its Chapter 11 proceedings. Moreover, Bridge, as an independent advisor to the estate, actively managed the § 363 asset sale and auction process.

Challenge

PHE, a state-of-the-art 40-bed physician-owned acute care hospital, filed for Chapter 11 bankruptcy protection after an unsuccessful year-long marketing and sales effort. The filing was commenced in the absence of financial advisors or any officer, director, management or staff member with any experience in management and administration of bankruptcy proceedings. Consequently, the Debtor and its counsel determined it to be in its best interest of the estate to retain Bridge to assume the overall management of the ongoing case and provide Bride professionals to assume multiple officer positions/duties. As CRO, Bridge had complete responsibility for all bankruptcy aspects of the company with no reporting relationship with the Board.

Solution

Bridge worked quickly to re-establish essential accounting, finance and treasury control functions, prepare reliable short-term cash flow forecasts, stabilize financial and operational performance and secure a DIP financing. The aforementioned services assured the existence of a viable enterprise to market and allow for a sale to obtain the highest or best sale offer for the Debtor. As CRO, Bridge was able to function as an independent resource regarding a broad array and business and strategic aspects as well needed an intermediary between the Debtor’s estate and its Board which primarily comprised interested physician shareholders.

Results

Bridge was able effectively and efficiently perform all of is assigned tasks and roles. In the absence of a COO controller and HR Director, Bridge’s interim-CFO oversaw multiple facets of the Debtor’s operations as well as the essential financial functions of a typical CFO. Enhancement of the Debtor’s accounting and operating protocols, revised cash collateral reporting and communication with other case constituents established a collaborative environment. The Debtor was able to, among other tasks, secure critical DIP financing, run a successful marketing and sales process, secure a viable “stalking horse” buyer, negotiate a POR, investigate potential claims objections to the contested 3rd lien holders and conclude a sale for $40 million.