Gordian Group served as financial advisor to the first-lien agent in connection with the reorganization of a private medical supply company.
Client: First-lien lenders to CCS Medical Holdings ("CCS")
Situation: As a result of its leveraged capital structure, CCS found itself with limited operating flexibility in a rapidly changing reimbursement environment. When coupled with a dramatic decline in profits from its wholesale marketing subsidiary and an unsuccessful sale/refinancing process, CCS was unable to meet its debt service requirements.
Engagement: Gordian Group was engaged by the first-lien lenders as financial advisor to provide valuation and restructuring advice with regard to recapitalizing CCS. Ultimately, a transaction was negotiated with the Company and implemented through a prenegotiated Chapter 11.
Outcome: CCS successfully reorganized through a bankruptcy sale/credit bid by the first-lien lenders.