Alvarez & Marsal

When New York United Hospital Medical Center (UHMC) filed for bankruptcy protection in December 2004, it planned to sell all of its real estate assets in an effort to raise capital. The 224-bed, not-for-profit community healthcare provider with a 70-bed skilled nursing unit turned to A&M REAS to divest 15.7 acres (or about 500,000 square feet) of real estate, consisting of numerous hospital buildings and a 12-story apartment building.

A&M REAS, acting for the official secured creditors' committee, and also as the debtor's advisor, began investigating rezoning issues surrounding the sale of the property in early 2005. The team was able to reduce key risks faced by prospective buyers and leveraged its deep expertise to provide strategic advice on the sale and auction processes. A&M successfully secured creditor and Board approvals for a stalking horse contract, and identified three qualified bidders to participate in an auction for the property.

UHMC's assets were ultimately sold to an investment fund managed by Starwood Capital for $28 million in a deal that was approved by the bankruptcy court in January 2006; the transaction closed in April. Final sale proceeds were 50% higher than expected.