Akin Gump Strauss Hauer & Feld LLP advised the steering committee of secured lenders of LifeCare Holdings, Inc., and its subsidiaries, one of the largest operators of long-term acute care hospitals in the United States, in connection with the lenders’ acquisition of substantially all of LifeCare’s assets in a sale pursuant to section 363 of the Bankruptcy Code. The lenders served as the stalking horse purchaser through a credit bid transaction worth approximately $320 million plus certain assumed liabilities.
The sale closed May 31, following approval from the U.S. Bankruptcy Court in Delaware and despite the objection of the government, which questioned whether the company would be able to pay an estimated $24 million in capital gains taxes generated from the sale. Akin Gump also advised the lenders in connection with securing $230 million in new credit facilities for the purchaser.
Scott Alberino and Ira Dizengoff, partners in Akin Gump’s financial restructuring practice, led the team advising LifeCare’s secured lenders.
