|By PR Newswire||
|February 25, 2014 04:17 AM EST||
PHOENIX, Feb. 25, 2014 /PRNewswire/ -- Restora Healthcare (Restora), an operator of two long-term acute care hospitals and skilled nursing facilities in Phoenix, today announced it has 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.
"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 LLC, who is serving as Chief Restructuring Officer.
Restora's current revenue-cycle management firm, Acuity Healthcare, has agreed to invest new capital in the business and has been contracted to provide management services upon emergence from the reorganization process. Joining Acuity's management efforts will be Tutera Senior Living & Healthcare, a highly regarded 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. HFG will be providing debtor-in-possession financing for the pendency of the case and has reached agreement with the parties on a post-emergence loan package.
Contact: Erica Lister
SOURCE Restora Healthcare