Landauer Metropolitan

landauer-metropolitan

Summary

Chief Restructuring Officer

Mt. Vernon, NY

Landauer Metropolitan, Inc., the largest durable medical equipment provider in the Northeast, faced financial distress due to losing Medicare contracts, a failed sale, and a senior credit default. Carl Marks Advisors (CMA) was engaged as Financial Advisor and Chief Restructuring Officer to address liquidity and capital structure issues.

CMA provided crisis management by negotiating short-term revolver access to meet payroll and maintain inventory, then filed the company for Chapter 11 bankruptcy. CMA secured lender approval for a §363 asset sale, avoiding liquidation, and operated for six months using cash collateral without requiring a DIP loan.

CMA also navigated a whistleblower lawsuit from the Department of Justice, managed financial reporting, and supported critical operational functions like billing, collections, and payroll. These efforts stabilized the company and helped prepare it for restructuring.

Key Challenges
Medicare Dependency
Bankruptcy Administration
§363 Sale

Engagement Highlights

  • Provided crisis management support: at the time of CMA’s engagement, the client had a liquidity event. CMA negotiated short term revolver access with the lender to make payroll and maintain minimum inventory levels and entered the Company into chapter 11 protection.
  • Quickly evaluated the Company’s restructuring options and negotiated lender approval for a §363 asset sale. Despite the Lender’s initial attempts to force a liquidation, CMA successfully conveyed the value of a restructuring and moved to file the Company.
  • Throughout the bankruptcy, CMA managed to operate from cash collateral for approximately six months and avoided the need for a DIP loan.
  • Navigated a potentially deal breaking whistleblower lawsuit brought by the Department of Justice regarding Medicare billing.
  • Led the Company’s finance team in the closing of monthly financial statements and all financial reporting required by the bankruptcy court.
  • Performed assessment to address organizational needs, business plan, and cash flow improvement. Also supported critical operational roles such as billing and collections, purchasing, payroll department and accounts payable.

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