Alvarez & Marsal

Challenge: The Brooklyn Hospital Center is a 464-bed academic community, which provides inpatient, outpatient and emergency services, along with four diagnostic and treatment centers, a home health agency, a program for AIDS treatment and health, and women, infant and child programs. It is considered a "safety net" hospital, which serves a disproportionate share of the uninsured and indigent population. Brooklyn Hospital filed for Chapter 11 bankruptcy protection in September 2005, in response to liquidity pressures. On the petition date, it had secured debt of $79.2 million and pre-petition claims of $230.6 million.

Approach: Alvarez & Marsal was retained as financial adviser to the Official Committee of Unsecured Creditors. As financial adviser, A&M supported the Committee's evaluation of the debtor's real estate options, asset sales and closure of operations, and supported and led plan negotiations.

Results Achieved: Brooklyn Hospital emerged from bankruptcy in September 2007, after settling $272 million in debt, including $170 million it owed to vendors. Unsecured creditors received distributions of cash and various instruments with a value.