Safe Haven Healthcare, Inc.
Idaho-based skilled nursing and assisted living facility forced into Chapter 11 due to revenue and cash flow issues associated with losing CMS licensing and being reinstated.
Feedback received from various prospects was centered on the location of the facilities, with concerns that the area would not be able to support the number of beds necessary to make the business profitable and the amount of investment needed to attract clients to the facility (or modify the facility for an alternative use).
Equity Partners ran an exhaustive marketing process, reaching out to thousands of prospective buyers, with 36 groups conducting their due diligence and numerous groups touring the facility.
Ultimately, an auction was held with three bidders and the secured creditor. The secured creditor was the high bidder at the auction via a credit bid. Through intense negotiations prior to the sale approval hearing, a deal was struck with the next high bidder, which is the largest assisted living operator in the state, that was acceptable to both the secured creditor and the SBA, however there were permitting and licensing issues that needed to be resolved before the court could approve the sale. The judge ordered a meet-and-confer with all parties-in-interest to resolve all outstanding issues. After the meet-and-confer it still required additional negotiations to arrive at a deal that was accepted by all and ultimately approved by the court and closed within 30 days of the sale order.