Alvarez & Marsal

Challenge: Our Lady of Mercy Medical Center (OLM) is a 369-bed, not-for-profit acute care teaching hospital servicing a poor and working class community in the northeast section of the Bronx borough of New York City. In March 2007, OLM filed for Chapter 11 bankruptcy protection in response to increased losses following the state's determination to reduce certain funding.

Approach: Alvarez & Marsal was retained as financial adviser to the Official Unsecured Creditors' Committee to advise on restructuring options, evaluate potential bids, monitor a Section 363 sale process and drive the best possible outcome for creditors. During the case, A&M has pressed the Committee's interests by actively:

• Striving for a favorable outcome of the Section 363 sale process;
• Pressing for the greatest proceeds from the pending sale closing through the provisions of the asset purchase agreement;
• Challenging the strategic benefit of certain pre-closing transition arrangements;
• Driving management for efficient financial management of hospital operations;
• Planning and arranging the liquidation of the remaining assets following the sale closing; and
• Managing the post-sale wind-up activities leading to a plan of liquidation.