[Just filed. Developing story.] February 6, 2023 – Privately held Delphi Behavioral Health Group, LLC and 32 affiliate debtors (“Delphi Health Group“ or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Florida, lead case number 23-10945 (Judge Peter D. Russin). The Fort Lauderdale based Debtors, who operate a “wide range of drug and alcohol detox and treatment centers,*” are represented by Paul Steven Singerman of Berger Singerman LLP. Further board-authorized engagements include: (i) Getzler Henrich & Associates as financial advisors (and supplying an interim CEO) and (ii) Epiq Corporate Restructuring, LLC as claims agent.
*The Debtors operate 13 locations in five states (California, Florida, Maryland, Massachusetts and New Jersey) and are a portfolio company of The Halifax Group, which acquired its interest in October 2017.
The Debtors’ lead petition notes between 100 and 200 creditors; estimated assets between $1.0mn and $10.0mn; and estimated liabilities between $10.0mn and $50.0mn. Documents filed with the Court list the Debtors’ three largest unsecured creditors as (i) EMD Realty Group, LLC ($763k rent claim), (ii) McDermott Will & Emery LLP ($615k professional services claim) and (iii) Matthew John Feehery ($400k disputed claim).
Asset Sale
The Debtors' lead Petition includes minutes that note that the Debtors have executed an asset purchase agreement with an entity called "Lender AcquisitionCo LLC" (no details as to identity so far) for the purchase of Debtors Union Fresh Start, LLC, d/b/a Serenity at Summit, Summit Behavioral Health Limited Liability Company, d/b/a Summit Behavioral Health Princeton Junction and SBH Haverhill, LLC, d/b/a Serenity at Summit New England.
DIP Financing
The Debtors have receoved commitments for $11.0mn of debtor-in-possession ("DIP") financing.
About the Debtors
According to the Debtors: “Delphi Behavioral Health Group was formed to take on the mission of treating addiction at its core. We believe that through personalized treatment in intimate settings, we can provide those suffering from substance abuse with the tools to start a journey of long-lasting recovery. No one should have to battle addiction alone. But we know how hard it is to choose a treatment center that’s right for you. That’s why our dedicated staff is committed to helping you find a treatment program that is ideal for your individual needs. We own and operate a wide range of drug and alcohol detox and treatment centers that are centered on personalized treatment. Our caring staff is trained to handle the challenges that may come with each treatment program. Each of our facilities is staffed by licensed medical and clinical professionals who are dedicated to our treatment philosophy. That philosophy means a commitment to maintaining a low clinician-to-client ratio, state-of-the-art treatment methods, and aftercare services centered on relapse prevention."
Read more Bankruptcy News
The post Delphi Behavioral Health Group, LLC – Fort Lauderdale Based Operator of 13 Addiction Facilities (a Halifax Group Portfolio Company) Files for Bankruptcy; Executes APA as to Sale of Three Facilities appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.