Landauer Metropolitan

Summary

Chief Restructuring Officer

Mt. Vernon, NY

Landauer Metropolitan, Inc. (“Landauer”) is the largest durable medical equipment provider in the North East providing critical medical equipment such as wheelchairs, respirators and hospital beds to patients for home care through over 20 locations.

Financially distressed due to failure to win new Medicare contracts, failed sale to a competitor and an event of default under its senior credit agreement. Carl Marks Advisors was hired as FA and CRO to help the Company find a long-term solution to its liquidity and capital structure challenges.

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.

Landauer Metropolitan

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

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