Rapid Chapter 11 and successful sale of long-term care pharmacy business
Partners Pharmacy Services, LLC
As Financial Advisor and later Chief Restructuring Officer, Gibbins Advisors guided the company through acute liquidity distress, arranged debtor-in-possession (“DIP”) financing, and executed a successful Chapter 11 sale that maintained operations and preserved value.
TEAM Ronald Winters, Clare Moylan, Isabelle Premkumar, Tyler Brasher
Situation Overview
Partners Pharmacy, a long-term care pharmacy provider serving 17,000 residents across seven states, experienced significant financial deterioration due to industry headwinds, reimbursement pressure, and tightening vendor terms.
As liquidity began to strain, the company downsized operations and pursued strategic solutions, including a sale of the business.
Images are for illustrative purposes only.
Summary
Sector:
Pharmacy, long-term care
Approx. Size:
17,000 residents across seven states
Our role:
Financial Advisor and later Chief Restructuring Officer
Key Results
Uninterrupted flow of pharmacy services.
Successful sale transaction.
DIP financing secured for debtors.
Role
Gibbins Advisors was initially engaged pre-petition as financial advisor to manage liquidity and evaluate strategic alternatives, including a potential going-concern sale. After two prospective transactions were unable to close due to external market conditions, the company filed for Chapter 11 bankruptcy protection.
Ronald Winters of Gibbins Advisors was appointed Chief Restructuring Officer, tasked with overseeing stabilization efforts, managing lender and stakeholder negotiations, and directing the sale process in collaboration with investment banking firm, SSG Capital Advisors, LLC.
Approach
Directed an accelerated, court-supervised sale process: Less than three months passed from filing until the Sale Order was entered.
Negotiated and secured DIP financing with the pre-petition lender to fund operations and provide runway for a competitive sale.
Implemented disciplined liquidity management and cash flow oversight to stabilize the business, preserve vendor and customer relationships, and minimize cash burn.
Coordinated lenders, bidders, and professionals while administering the Chapter 11 process through closing of a successful 363 sale.
Key Accomplishments
Debtors secured $6.5 million in DIP financing from the pre-petition lender, which was vital to bridge to the sale.
Despite severe cash constraints, the Debtors maintained uninterrupted pharmacy services while consolidating operations, exiting underperforming locations, and reducing costs to establish a sustainable go-forward footprint.
The Debtors completed a successful sale transaction: $44m in pre-petition secured debt, $6.5m in DIP financing, and 100% of administrative costs were assumed by the Buyer, providing value to the estate totaling over $50m.
