October 21, 2019 − Nobilis Health Corp.and two affiliated Debtors (NYSE American: HLTH, “Nobilis Health” or the “Debtors”) filed for Chapter 7 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 19-12264. The Debtors, a healthcare development and management company with more than 30 locations across Texas and Arizona, are represented by Robert J. Dehney of Morris, Nichols, Arsht & Tunnell LLP. The Debtors’ lead petition notes between 1,000 and 5,000 creditors; estimated assets between $100.0mn and $500.0mn; and estimated liabilities between $100.0mn and $500.0mn.
In 8-K's filed with the SEC, the Debtors reported a series of recent resignations (including CEO, President, CFO, Chief Legal Officer, Chief Restructuring Officer and Chair of the Debtors' Audit Committee), sudden hospital closings, a bank facility default (and subsequent forbearance agreements), the appointment of a receiver and the Debtors' delisting from the NYSE American for failure to file financials. These events, which together presage a contested process in respect of more than $100.0m in physically diverse assets, include:
- On March 29, 2019, the Company received a notice of default from BBVA Compass Bank, as Administrative Agent, with respect to the Company’s Credit Agreement dated October 28, 2016, as amended. The notice (i) cited failure to make scheduled principal payments, (ii) noted the application of default interest rate (an increase of 2.0% per annum) and (ii) threatened acceleration of the facility’s $124.7mn balance. This default has been the subject of a series of forbearance agreements
- On May 7, 2019, James Springfield resigned as Chief Executive Officer of the Company, effective immediately.
- On May 16, 2019, Harry Fleming resigned as an Chief Executive Officer, effective immediately, but remained as the Chairman of the Debtors' Board of Directors.
- On August 1, 2019, The Debtors entered into a Fourth Forbearance Agreement.
- On September 6, 2019, Brandon Moreno resigned as the Chief Financial Officer of Nobilis Health Corp. and Marissa Arreola resigned as the Chief Legal Officer of the Company.
- On September 13, 2019, the Debtors announced the sudden closing of Surgeons’ Premier Medical Center facility in Sugar Land, Texas, and the Scottsdale Liberty Hospital facility in Scottsdale, Arizona, effective September 13, 2019.
- On September 13, 2019, Kenneth Efird, the Debtors' President, resigned effective immediately.
- On Sept 23, 2019, the Debtors were delisted from NYSE American LLC (“NYSE”) for failure to file a Quarterly Report on Form 10-Q for the three months ended September 30, 2018.
- On September 24, 2019, the 44th Judicial District Court of Dallas County, Texas (the “Court”), entered an order (Cause No. 19-15508) appointing Howard Marc Spector as Temporary Receiver for all of the assets of the Debtors.
- On September 27, 2019, the Company announced the sudden closing of Kirby Surgical Center in Houston, Texas, Plano Surgical Hospital in Plano, Texas, Uptown Surgery Center of Plano Surgical Hospital in Dallas, Texas, and its Peak intraoperative neuromonitoring service business, effective September 27, 2019.
- On September 30, 2019, Steven Ozonian, Chair of the Audit and Compliance Committees, notified the Board of Directors of Nobilis Health Corp. of his intention to resign as a director of the Company, effective immediately.
- On October 3, 2019, Daniel Wiggins notified the Board of Directors of Nobilis Health Corp. of his resignation as the Chief Restructuring Officer.
About the Debtors
Founded in 2007, Nobilis Health is a full-service healthcare development and management company, with more than 30 locations across Texas and Arizona, including hospitals, ambulatory surgery centers, and multi-specialty clinics. In addition, Nobilis Health partners with more than 30 facilities across the country. Marketing nine independent brands, Nobilis Health deploys a unique patient acquisition strategy driven by proprietary, direct-to-consumer marketing technology, focusing on a specified set of procedures that are performed at our centers by local physicians.
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