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 THE RESULT: Caymus Partners was hired by the workout group of Health Risk Management, Inc. (“HRM” or the “Company”), which had entered Chapter 11 bankruptcy, to sell certain of the Company’s assets. In working with the bankruptcy court, Caymus Partners completed the sale process and received court approval in 72 days without jeopardizing the business opportunities of one of its divisions, 4YourCare, a third-party administrator (“TPA”), which was sold to CBCA, Inc. In a separate transaction, Caymus Partners completed the sale of Institute for Healthcare Quality (“IHQ”), another subsidiary of HRM, to McKesson Corporation. IHQ is a provider of clinical, financial, and liability risk management solutions.
“Caymus Partners was instrumental in selling the assets of HRM at lightning speed and at a favorable valuation. Their knowledge of the
industry, relationships with potential buyers and ability to quickly
generate interest and close the transaction were keys to why these
transactions were completed. Caymus Partners worked under an extremely
tight time frame and pulled a rabbit out of a hat for us. I would hire
them again. Caymus Partners was outstanding on this project and
accomplished what I had thought was impossible."
Corbett Price
Kurron Shares, workout group representing HRM
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Company Description
HRM was a multi-faceted healthcare services company, comprised of three subsidiaries that entered Chapter 11 bankruptcy. One of the Company’s subsidiaries, 4YourCare, is a third-party administrator whose client list includes HCA, Triad Hospitals, Goodyear Tire and other Fortune 500 companies. Another Company subsidiary, IHQ, is a provider of clinical, financial, and liability risk management solutions to managed care organizations and other provider groups. Both 4YourCare and IHQ were sold out of bankruptcy.
Client Objective
4YourCare and IHQ were in Chapter 11 bankruptcy proceedings as a result of HRM’s financial troubles. The debtors of HRM were looking for financial or strategic buyers to assume certain of the outstanding debt and take over the daily operations of each of the subsidiaries. The sale of those subsidiaries needed to take place within a very short time frame.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Quick Turnaround. Caymus Partners rapidly generated interest and completed the sale of both subsidiaries, 4YourCare and IHQ, in only 72 days;
- No Interruption in Business. Caymus Partners was able to quickly complete the sale of 4YourCare without interrupting its business, 40% of which was up for renewal during the time of the bankruptcy proceedings;
- Efficient Process. Caymus Partners worked with the Company in constructing offering memoranda of 4YourCare and IHQ, determining a list of potential strategic and financial buyers, and quickly canvassing the market for interest; and
- Debt Holders Received Original Investment. As a result of the success of Caymus Partners’ process, the debt holders reclaimed their entire outstanding principal in the bankrupt entities.
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