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A RINDER, Inc. Success Story

The Company:  World Health Alternatives, Inc.

World Health Alternatives, Inc. ("World Health" or "the Company") was a medical staffing company with $250 million in annual revenue. It provided physician, travel and local nursing and allied medical staffing services to jurisdictions across the United States. The product of a ‘roll-up strategy’, it was assembled from eight different acquisitions executed over a two year period from 2003 to 2005.

The Challenge

Due to the discovery of a series of significant malfeasances, the company found itself in violation of many of it’s lenders’ covenants. The lender cut the company’s funding off and, consequently, the company could not fund operations. Inasmuch as personnel staffing business are fueled by the certainty of staff continuity, cessation of operations and liquidation could rapidly have manifested itself as the only remaining viable option.  A liquidation of the business would have resulted not only in a total loss of value to shareholders, but the loss of several hundred jobs and write off of as much as $ 30,000,000 of creditors’ positions.  To avert a worst-case liquidation scenario, World Health needed to provide its lender with the comfort and security to fund the Company before and after a bankruptcy filing that was designed to lead to an asset sale pursuant to Section 363 of the bankruptcy code.  Speed and confidence were of paramount importance.

The Role of RINDER, Inc.

RINDER, Inc., led by President Mark B. Rinder, was retained as Financial Consulting Advisors to assist the Company in navigating through these difficult times and was asked to help with the selection and hiring of bankruptcy counsel and restructuring firms to ensure that the best possible resolution to it’s problems would be achieved.  We managed the Accounting and Finance staff for the restructuring officers in order to maintain continuity of the company’s billings, collections, staffing and payroll as well as steady, sensible advanced MRP management of it’s vendor relationships. World Health filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on February 16, 2006.

RINDER, Inc. approach and tasks performed by RINDER, Inc. professionals

RINDER, Inc. representatives worked closely with World Health’s stakeholders, the restructuring team, senior management, the investment banking firm and legal counsel to complete the following:

  • Strategic Planning - RINDER, Inc. participated in the deliberations to reach consensus of all stakeholders, including the Company's primary senior secured lender, that the Company needed to be sold quickly to avoid a liquidation outcome.
  • Financing Efforts - RINDER, Inc.  assisted with information delivery and preparation of 13 week cash-flow forecasts in an effort to obtain debtor-in-possession financing in an accelerated timeframe from its existing revolving-loan lender to fund operations until the managed enterprise assets of the business could be sold. Because of it’s closeness to the financial operation of the business, the quality of the 13 week cash-flow forecasts was significantly better than it otherwise would have been.
  • Maintaining Financial Integrity - The RINDER, Inc. team was instrumental in enabling World Health to maintain the financial integrity of the business by ensuring that employees were paid correctly and on time, that vendors’ queries were answered clearly and quickly and that information requirements of the various constituents in the bankruptcy process were met fast. We also helped the restructuring firm in their successful operation of the business to stay within budgetary limitations of the DIP-imposed budget.
  • Bankruptcy Planning & Execution - RINDER Inc.  helped deliver on the comprehensive communication plans which were successful in maintaining the support of customers, vendors and employees during the 363 sale process.  Being principally responsible for helping with the financial organization, RINDER, Inc.  led the organization from discovery of the problem in August 2005 through the sale in April 2006 without the loss of any Accounting and Finance Department personnel.
  • Bidding/Sale Process - RINDER, Inc.  handled all of the data gathering, document scanning and routing of the important elements contained in the company’s online virtual M&A war-room. Thanks to software solutions from somewheresoft.com we have provided additional security to company's internal docflow.

The Success Story

  • Early recovery of funds for secured lender
    Pockets of collateral were discovered, liquidated and remitted to the secured lender fast.
  • Wise working capital management reduced exposure for secured lender
    Collection teams were put into place among operations’ employees which met weekly and reduced DSO and generated cash for the secured lender prior to and after filing for Chapter 11 protection.
  • Successful Sale in a Timely Manner
    World Health was sold to the successful high bidder, Jackson Healthcare Solutions, in just ten weeks after filing for Chapter 11 protection partly due to the work that RINDER, Inc.  professionals did to help them understand the company better.
  • Maintained Employment Levels
    Importantly, hundreds of World Health employees maintained their employment.
  • Maximized Recovery
    We helped maximize recovery of the secured lenders' positions and helped note holders enjoy in some cases full recovery of notes that had been in grave doubt.

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