Envision emerges from bankruptcy

[aneftp]

Envision reorganizes, plans to emerge from bankruptcy in October

Dallas-based Envision Healthcare confirmed plans to split with AmSurg and reorganize, eliminating 70% of company debt. Envision aims to emerge from bankruptcy b

www.beckershospitalreview.com

I really do not understand why the bond holders and whoever has a real steak in the bk proceedings would agree to let envision wipe out all their debt.

Essentially do what GM motors did when the emerge from BK. The “bad envision “ with the debt stays behind in BK. The “good envision” with the better contracts emerge debt free and amsurg (the more profitable of envision assets emerges as a separate entity again).

I don’t know why the junior lien holders would agree. If I were junior lien hold I would have let the entire entities get liquidated.

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[Dr. Rude]

Envision reorganizes, plans to emerge from bankruptcy in October

Dallas-based Envision Healthcare confirmed plans to split with AmSurg and reorganize, eliminating 70% of company debt. Envision aims to emerge from bankruptcy b

www.beckershospitalreview.com

I really do not understand why the bond holders and whoever has a real steak in the bk proceedings would agree to let envision wipe out all their debt.

Essentially do what GM motors did when the emerge from BK. The “bad envision “ with the debt stays behind in BK. The “good envision” with the better contracts emerge debt free and amsurg (the more profitable of envision assets emerges as a separate entity again).

I don’t know why the junior lien holders would agree. If I were junior lien hold I would have let the entire entities get liquidated.

probably because they could get a few bucks if they signed off versus being buried in legal costs and years of fighting and probably get nothing.

 

[coffeebythelake]

Does the government and our tax dollars foot the bill for this bankruptcy?

 

[aneftp]

Since kkr is private. They don’t have to report any losses publicly. But my hunch is after their fees they collected with the transaction in 2018

Their profits in 2018-2020. And making interest only bond debt payments till they couldn’t afford it.

My hunch is their total loss in the whole deal was $0. The firm took in 1 billion profit for 2 years on top of their 20% usual transaction fees when the deal was done. They still made out Iike bandits even “losing 7 billion “ (or 70% debt forgiven”)

 

[DirtDocMD]

It’s amazing what they get away with in the name of “business”. Imagine an individual taking out a home construction loan, paying a bunch of friends and family for “work” UP FRONT (or “bonuses”) , buying a bunch of materials, transferring them to another job (house you’re building elsewhere), then declaring that the house can’t be built (leaving the bank high and dry, but with you having a stack of materials located elsewhere, and all your family and buddies with pockets full of cash). There’d be hell to pay (fraud/theft/etc).

Take the same scenario with a “business”, get folks to invest money, stick that money in folks’ (admin/board of directors) pockets in the form of “bonuses” (even if the company isn’t doing well), transfer the assets (purchased with investors’ money) of the business to your other shell businesses, then declare bankruptcy, and they call you KKR or Blackrock or Lampert or Ackman. It’s insane.

 

[nimbus]

Nice landing…

https://www.bizjournals.com/nashville/news/2023/10/11/envision-rechtin-humana-medical-nashville-ceo-2024.html

 

[midazzoler]

Guess he did such a good job with the Envision bankruptcy that if Humana tanks they are in good hands.

 

[D P356]

Private equity-backed radiology provider Envision Healthcare to exit bankruptcy; CEO departing for Humana.

“Rechtin first took over as Envision’s top exec in February 2020. He has more than 22 years of experience in healthcare, including serving as president of UnitedHealth’s OptumCare. Prior to that, he was SVP of corporate strategy and president of the California market for kidney care giant DaVita. Rechtin will collect a base salary of $1.1 million as chief operating officer which will climb to $1.25 million as CEO. He’ll be eligible for additional incentive compensation at 200% of base earnings, along with company stock grants worth $6 million and long-term incentive pay at another $6 million, according to an SEC filing.”

 

[lotsapain]

Guess he did such a good job with the Envision bankruptcy that if Humana tanks they are in good hands.

That is f*** fantastic!!!!!! Lead a company to bankruptcy then restructure it and land a new job..... by the same token kill a couple
of patients then invent a new way of doing anesthesia by not giving anything and just saying "its ok" become hospital CEO....

Fantastic come back I can't say I did not see it coming I listed in the company address after they "emerged" ..... darn I am in the wrong profession

 

[aneftp]

That is f*** fantastic!!!!!! Lead a company to bankruptcy then restructure it and land a new job..... by the same token kill a couple
of patients then invent a new way of doing anesthesia by not giving anything and just saying "its ok" become hospital CEO....

Fantastic come back I can't say I did not see it coming I listed in the company address after they "emerged" ..... darn I am in the wrong profession

Bad Hospital executives are like bad professional coaches. They just recycle based on “experience”

Performance does not matter. All that matters is getting into some leadership opportunities in healthcare and moving up the ladder. Someone will hire you.

I’ve been thinking about getting into leadership role myself. Passed up a few times. Now at my stage in my career. My kids are older. I may submit to commit attending a few meetings. Padding the stats on the cv. It’s all a game. The extra 20-30k isn’t really worth it with time commitment. But the “experience “ on my cv makes me look better than I really am.

 

[GravelRider]

That is f*** fantastic!!!!!! Lead a company to bankruptcy then restructure it and land a new job..... by the same token kill a couple
of patients then invent a new way of doing anesthesia by not giving anything and just saying "its ok" become hospital CEO....

Fantastic come back I can't say I did not see it coming I listed in the company address after they "emerged" ..... darn I am in the wrong profession

I agree with your sentiment, but this stuff happens in our profession too…albeit on a smaller scale. Think about those academic departments where the least capable anesthesiologists are “hidden” in the admin offices and given cushy offices and an additional stipend. Or the partnerships where the ancient dinosaur partner is given the cataract room everyday, but still collecting full partner pay. Contrary to popular belief, success in capitalism has never been based on merit.

 

[lotsapain]

Bad Hospital executives are like bad professional coaches. They just recycle based on “experience”

Performance does not matter. All that matters is getting into some leadership opportunities in healthcare and moving up the ladder. Someone will hire you.

I’ve been thinking about getting into leadership role myself. Passed up a few times. Now at my stage in my career. My kids are older. I may submit to commit attending a few meetings. Padding the stats on the cv. It’s all a game. The extra 20-30k isn’t really worth it with time commitment. But the “experience “ on my cv makes me look better than I really am.

I can promise you that you wont be able to just GET into leadership, I am not sure why people on here (and I saw some of your prior comments) think that they can just WALK into a leadership position even vice chair positions are hard to get let alone say a CMO position and no not everyone will just hire you. I am talking about a much higher positions like the CEO discussion above.