Chief Restructuring Officer, Interim CEO, and Liquidating Trustee for $80MM Multi-State Radiology Group
Medical Diagnostic Imaging Group (MDIG) was a Radiology physician practice with locations in AZ, NM, WA, TX, PA, and FL. Enterprise was in distress and decline due to substantial litigation, mismanaged centralized billing, and inflated executive staff compensation. Resolute, led by Jeremiah (Jerry) Foster, was hired to serve as Chief Restructuring Officer and Financial Advisor. Duties included review and assessment of short and long-term projected cash flows; management of day-to-day operations; and managing sale of assets via § 363 sale or strategic alternatives for maximizing the recovery on the wind down of enterprise.
After internal review, it became clear than an orderly wind down was needed. MDIG filed for Chapter 11 Bankruptcy. It was agreed that Jerry should replace and serve as the Debtors’ departing CEO through the Bankruptcy process, due to his substantial experience in overseeing distressed healthcare companies and disposition of assets.
The wind down process included addressing and resolving leases and contracts, as well as selling all unsecured equipment and company assets, including valuable provider and insurance contracts. The in-house billing department required skilled stabilization and management. Insurance claims and timely filing had been mishandled and required swift intervention to properly resolve remaining accounts payable. Resolute also worked with counsel to address the ongoing litigation.
Upon successful confirmation of the Liquidating Plan, Resolute was unanimously appointed as Liquidating Trustee, overseeing the claims process, addressing any fraudulent transfers, and clawing back any preferential payments.
Resolute worked to ensure continuity in the Debtors’ clinical and business operations, oversaw a fair and transparent §363 Sale of Strategic Assets, expedited confirmation of a joint Chapter 11 plan, and preserved estate causes of action and other assets for the benefit of unsecured creditors.
Resolute facilitated final cash collections of over $15MM to the estate and was able to pay off Secured Lender in full.