Business Bankruptcy

Strategic Solutions for Companies in Financial Distress

When financial or operational challenges threaten your business, you need counsel who understands both the Bankruptcy Code and business realities. We have guided companies across diverse industries through complex distress situations, delivering results that preserve value and create paths forward.

Our attorneys regularly represent companies in distress through both out-of-court workouts and Chapter 11 reorganization proceedings. We bring sophisticated transactional skills to restructuring work, functioning as deal architects who negotiate and draft the critical documents that determine outcomes.

Comprehensive Distress Services

We help clients navigate the full spectrum of distress alternatives, including:

• Chapter 11 reorganization
• Out-of-court workouts and restructurings
• Receiverships
• Plans of arrangement
• Loan forbearance and extension agreements
• Deeds in lieu of foreclosure
• Guaranty and foreclosure litigation
• Asset and stock sales
• Debtor-in-possession financing

Strategic Advocacy

Where necessary, we provide aggressive representation in contested matters and adversary proceedings before bankruptcy courts. Our goal is always cost-effective resolution, but we never shy from litigation when necessary to protect our clients’ interests.

Transactional Excellence

In representing companies facing financial or operational challenges, our attorneys regularly negotiate and draft:

• Reorganization plans and disclosure statements
• Bankruptcy financing documents
• Asset and stock purchase agreements
• Real estate and personal property leases
• License agreements
• Management agreements
• Settlement agreements

Debtor representation requires the deepest knowledge of the Bankruptcy Code. We know the Code, and we get results.

Maximizing Recovery for Unsecured Creditors

Committee representation requires sophisticated strategy, aggressive advocacy, and deep bankruptcy expertise. Our firm has represented numerous official committees of unsecured creditors in Chapter 11 bankruptcies and official and ad hoc committees of claimants in asbestos cases, consistently delivering results that capture maximum value for creditors.

Our Approach

We focus on securing recovery for unsecured creditors that would otherwise flow to other constituents. In committee engagements, our goal is to create legal structures that ensure general unsecured creditors receive fair opportunities to share in recoveries, even in the most challenging cases. This often requires approaching secured lenders, asset purchasers, and other parties to negotiate meaningful recovery. We are experienced in the delicate balance between cooperation and confrontation—we know when to negotiate and when to litigate.

Aggressive When Necessary

When committee representation demands litigation and advocacy—such as opposing problematic debtor-in-possession financing facilities or unfavorable sale transactions—we are prepared and experienced. We take firm stances when the protection of creditor interests requires it.

Keeping Players Accountable

Our firm brings extensive experience reviewing and analyzing business decisions that led to distressed situations. This serves the dual purpose of ensuring accountability to maximize creditor value while identifying potential causes of action (including insurance-covered claims) available to unsecured creditors.

We serve as committee counsel in large and small cases. We are selected because we get results.

Protecting Secured and Unsecured Creditor Interests

Creditor representation in distressed situations requires balancing aggressive advocacy with strategic pragmatism. Our firm assists creditor clients in maximizing recovery while minimizing costs—delivering real value when it matters most.

Full-Spectrum Creditor Services

We guide creditors through workouts, restructurings, bankruptcy filings, receivership appointments, and foreclosures. Our services include:

Transactional Representation

• Negotiating and closing transactions involving creditor collateral
• Section 363 sales
• Sales under plans of reorganization
• Loan workouts and modifications
• Restructurings and forbearance agreements

Litigation and Court Proceedings

• Relief from stay proceedings
• Disputes regarding secured status and collateral value
• Fraudulent transfer and preference actions
• Lender liability defense

Distressed Debt Acquisition

• Representing buyers of defaulted or distressed loans
• Bankruptcy court proceedings
• Receiverships
• Assignments for the benefit of creditors

Industry Focus

We have significant experience restructuring all types of real estate loans throughout the Southeast, including:

• Commercial mortgage loans
• Construction loans
• Bridge loans
• Mezzanine loans
• Preferred equity investments

We also represent private equity groups, special servicers, and other financial institutions navigating complex distressed situations across multiple industries, with particular depth in healthcare distress.

Strategic Alternatives

Our attorneys help creditor clients evaluate and pursue alternatives for obligations in all stages of distress, from early intervention through final resolution. We understand that every distressed situation presents unique opportunities and risks—our advice is always tailored to your specific circumstances and objectives.

Maximizing recovery while minimizing cost means delivering value to our clients.

Counsel to Bankruptcy Trustees and Receivers

Serving as counsel to bankruptcy trustees and receivers requires specialized expertise and intimate knowledge of fiduciary duties, procedural requirements, and practical case administration. At Waldrep Wall, we bring extensive experience serving as general and special counsel to trustees in Chapter 7 and Chapter 11 proceedings, as well as plan trustees.  Two of our partners serve as panel Chapter 7 trustees and two more serve as panel Subchapter V Chapter 11 trustees.

Comprehensive Trustee Services

Our work for trustees encompasses all aspects of case administration and asset recovery, including:

• Adversary proceedings of all types
• Chapter 7 recovery actions (preferences, fraudulent transfers, lender liability)
• Objections to claims
• Retention and fee applications
• Asset identification and recovery
• Estate administration
• Distribution planning

Distinguished Leadership

Tom Waldrep, a former United States Bankruptcy Judge, has served as a federal equity receiver and is a member of the National Association of Federal Equity Receivers (NAFER) and the National Association of Bankruptcy Trustees (NABT). Tom has also served as Chapter 11 trustee for several hospitals, bringing invaluable judicial perspective to trustee representation.

Jim Lanik is a member of the panel of Chapter 7 bankruptcy trustees for the United States Bankruptcy Court for the Middle District of North Carolina, and our firm represents him in the majority of these cases. Jim also serves as a receiver in complex state court receiverships.

Kevin Sink is a member of the panel of Chapter 7 bankruptcy trustees for the United States Bankruptcy Court for the Eastern District of North Carolina, and our firm represents him in the majority of these cases. Kevin is certified as a business law specialist by the North Carolina State Bar Board of Specialization.

Ciara Rogers serves as a trustee in Subchapter V Chapter 11 cases in the Eastern District of North Carolina.  Ciara is certified as a business law specialist by the North Carolina State Bar Board of Specialization.

Jennifer Lyday serves as a trustee in Subchapter V Chapter 11 cases in the Middle District of North Carolina. Jennifer is certified as a business law specialist by the North Carolina State Bar Board of Specialization.

Chapter 7 Expertise

For businesses, Chapter 7 bankruptcy typically involves the difficult decision to close operations. A properly administered bankruptcy proceeding can provide a soft landing that minimizes impact on owners, officers, and employees while ensuring orderly asset disposition and equitable distribution to creditors.

Beyond Trustees

We also represent receivers, financial advisors, auctioneers, liquidating trust trustees, and other insolvency professionals, bringing the same depth of expertise to all fiduciary representations.

We serve as trustees, and we know how to represent trustees.

Specialized Counsel for Rural Healthcare Providers in Distress

Rural hospitals face unique challenges—lower reimbursement rates, high Medicare / Medicaid populations, recruitment difficulties, and aging infrastructure. When financial distress threatens, these critical community institutions need counsel who understand both bankruptcy law and the intricacies of healthcare operations and regulation.

Unmatched Healthcare Bankruptcy Expertise

We have significant experience representing rural hospitals in distress, both through out-of-court workouts and Chapter 11 reorganization. We also counsel buyers, lenders, directors, and officers dealing with bankrupt healthcare entities.

Tom Waldrep, a former United States Bankruptcy Judge, brings unique perspective to rural hospital representation, having served as Chapter 11 trustee for several hospitals navigating the reorganization process.

Beyond Bankruptcy Law

Our extensive healthcare bankruptcy experience means we do not just practice bankruptcy law—we understand the nuances that make healthcare different. Our team is intimately familiar with:

• Healthcare reimbursement systems (Medicare, Medicaid)
• Provider regulation and compliance
• Healthcare licensure requirements
• Stark Law and Anti-Kickback considerations
• Certificate of Need processes
• Medical staff and credentialing issues

Industry Leadership

We have established ourselves as industry leaders in the niche arena of rural hospital restructuring. When a rural hospital faces financial challenges that threaten its ability to serve the community, we bring both the bankruptcy expertise and healthcare knowledge necessary to explore all available options—from operational restructuring to strategic partnerships, asset sales, or orderly wind-down.

We know the Bankruptcy Code and leverage it to assist rural hospitals in navigating the challenges they face.

Protecting Family Farm Legacy Through Financial Challenges

Family farms represent more than business assets—they embody generations of hard work, family heritage, and community connection. When financial or operational challenges threaten, farm families need counsel who understand both the unique Chapter 12 bankruptcy process and the realities of agricultural operations.

Decades of Agricultural Experience

Our attorneys have decades of experience representing farms in distress, having represented both creditors and debtors in Chapter 12 bankruptcies. We understand the seasonal nature of agricultural income, the impact of commodity price fluctuations, and the challenges of operating capital-intensive businesses with uncertain revenues.

Chapter 12 Expertise

Chapter 12 bankruptcy was specifically designed to protect and assist individuals struggling with the large debts associated with farming and fishing industries. This specialized bankruptcy chapter offers unique advantages for family farmers, including:

• More flexible reorganization terms than Chapter 11
• Higher debt limits than Chapter 13
• Ability to modify secured debt on certain property
• Extended plan payment periods
• Continued farming operations during reorganization

Our Goal

We guide family farmer clients through the Chapter 12 process with the goal of maximizing the benefits of reorganization or, when necessary, structured liquidation that preserves as much value as possible for the family.

Comprehensive Representation

In representing farms facing financial or operational challenges, our attorneys function as transactional counsel, negotiating and drafting:

• Reorganization plans tailored to agricultural operations
• Financing documents and loan modifications
• Sale agreements for equipment, livestock, and real property
• Real estate and personal property leases
• Operating agreements with creditors

We offer cost-effective resolutions designed to protect family farmer interests while preserving relationships with creditors whenever possible.

We fight to protect the interests of family farmers in bankruptcy court.

Comprehensive Counsel for Healthcare Entities in Financial Distress

Healthcare restructuring demands specialized knowledge that extends beyond general bankruptcy expertise. Healthcare providers operate in a heavily regulated environment with unique reimbursement systems, licensure requirements, and operational constraints. When financial distress strikes, you need counsel who understand both bankruptcy law and the healthcare industry.

Full-Spectrum Healthcare Bankruptcy Services

We represent debtors, creditors, trustees, asset acquirers, and buyers and sellers of healthcare assets both inside and outside bankruptcy. Our client base spans the healthcare industry:

• Clinical research organizations
• Hospitals (rural, critical access, and community)
• Physician practices and medical groups
• Skilled nursing facilities
• Assisted living facilities
• Independent living communities
• Continuing care retirement communities
• Home health agencies
• Ambulatory surgery centers

Led by a Former Federal Judge

Our healthcare restructuring practice is anchored by Tom Waldrep, former United States Bankruptcy Judge for the Middle District of North Carolina. He and Jennifer Lyday have represented over a dozen purchasers or sellers of hospitals. Tom currently serves as Chapter 11 trustee for several hospitals. He and Jennifer bring unparalleled insight to healthcare bankruptcy matters.

Understanding Healthcare Complexity

Our extensive experience means we navigate the unique aspects of healthcare bankruptcy with confidence:

• Medicare and Medicaid reimbursement issues
• Provider agreements and managed care contracts
• Healthcare licensure and regulatory compliance
• Stark Law and Anti-Kickback considerations
• Medical staff and credentialing matters
• Certificate of Need requirements
• HIPAA compliance and patient data protection
• Quality of care obligations during financial distress

Strategic Solutions

Whether representing a distressed healthcare provider seeking to reorganize, a creditor protecting interests in a healthcare bankruptcy, a buyer evaluating distressed healthcare assets, or a trustee administering a healthcare estate, we bring strategic thinking and deep industry knowledge to every engagement.

We have handled healthcare restructurings ranging from small physician practices to major hospital systems, always focused on achieving the best possible outcome given the specific circumstances and constraints.

Navigating Healthcare Regulation

Healthcare providers operate in one of the most heavily regulated industries in America. North Carolina’s regulatory framework adds additional layers of complexity through state-specific licensing, Certificate of Need requirements, and Medicaid program rules. Compliance is not optional—it is essential to continued operations and reimbursement.

Intimate Understanding of Healthcare Regulation

Our firm brings an intimate understanding of North Carolina’s healthcare regulatory environment. We represent clients before regulatory bodies, in government audits, and in transactional matters where regulatory compliance is paramount. Our attorneys have years of experience addressing the full spectrum of regulatory issues affecting healthcare providers.

Core Regulatory Services

Licensing and Credentialing We guide healthcare providers and facilities through initial licensure applications, license renewals, changes of ownership, and related matters. We also assist individual practitioners with medical staff credentialing and privileging.

Reimbursement Compliance Our attorneys routinely address Medicaid reimbursement issues, Medicare compliance, and managed care contract interpretation. We help clients navigate audits, appeals, and disputes with payors.

Federal Healthcare Laws We provide counsel on compliance with critical federal requirements, including:

• Stark Law (physician self-referral restrictions)
• Anti-Kickback Statute
• HIPAA privacy and security requirements
• False Claims Act exposure
• Corporate practice of medicine restrictions

Transactional Compliance We regularly draft or review agreements with vendors, suppliers, and contractors to ensure compliance with rules and regulations affecting healthcare providers. This includes:

• Vendor and supplier contracts
• Management services agreements
• Employment agreements
• Professional services agreements
• Joint venture arrangements

Proactive Guidance

Healthcare regulation is constantly evolving. We routinely advise clients on compliance with the ever-changing regulatory landscape, helping them stay ahead of new requirements and avoid costly violations.

Our goal is to keep you compliant while you focus on delivering excellent patient care.

Expert Guidance Through Complex Healthcare Financing

Healthcare financing transactions involve intricate regulatory, corporate, and finance considerations that exceed typical commercial lending complexity. Whether you are acquiring a facility, refinancing existing debt, or funding expansion, you need legal counsel with deep experience in healthcare finance structures.

Comprehensive Healthcare Financing Experience

We have extensive experience in the acquisition, sale, and financing of diverse senior housing settings, including:

• Independent living communities
• Assisted living facilities
• Skilled nursing facilities
• Continuing care retirement communities (CCRCs)
• Memory care facilities
• Board and care homes

Strategic Advantage

With our healthcare bankruptcy and insolvency experience as background, we are uniquely positioned to identify risks, formulate strategies, and structure deals with terms optimal for long-term care clients. We understand what can go wrong and how to protect against it.

Diverse Financing Structures

Our attorneys regularly serve as counsel to long-term care industry borrowers across a wide range of financing structures:

• Traditional commercial lending
• Fannie Mae and Freddie Mac loans
• Seller financing arrangements
• Private equity structures
• Venture capital investments
• Mezzanine financing
• Bridge loans

Tax-Exempt Financing

We have assisted clients with tax-exempt borrowings through the issuance of tax-exempt bonds, guiding them through:

• Bond authority approval processes
• Trust indentures
• Loan agreements
• Bond documents and closing procedures
• Ongoing compliance requirements

Whether you are pursuing conventional financing or complex structured transactions, we deliver sophisticated counsel that protects your interests and positions your project for success.

Strategic Counsel for Healthcare Facility Development in North Carolina

Acquiring or developing long-term care facilities in North Carolina requires navigating numerous complex business and regulatory challenges. Success demands experienced counsel who understand the intersection of financing, real estate, corporate structure, construction, and regulatory compliance.

Deep Industry Knowledge

Our firm possesses extensive industry knowledge in healthcare facility development, enabling us to provide comprehensive representation throughout the development process. We have guided clients through every stage—from initial concept and site selection through Certificate of Need approval, financing, construction, and operational launch.

Comprehensive Development Services

Beyond Certificate of Need matters, we handle the full range of legal work required for healthcare facility development:

• Entity formation and corporate structure
• Site acquisition and real estate matters
• Financing and capital structure
• Construction contracts
• Management agreements
• Employment agreements
• Vendor and supplier contracts
• Licensing and regulatory compliance

Our goal is to serve as your comprehensive legal partner throughout the development process, anticipating issues and solving problems before they threaten timelines or budgets.

Navigating HUD Section 232 Financing for Long-Term Care Facilities

The U.S. Department of Housing and Urban Development’s Section 232 Mortgage Insurance program provides valuable financing and refinancing opportunities for residential care facilities nationwide. However, HUD-insured transactions involve extensive documentation, strict compliance requirements, and complex closing procedures that demand experienced legal counsel.

Section 232 Program Overview

Within HUD, the Office of Residential Care Facilities manages the Section 232 Mortgage Insurance for Residential Care Facilities program, which provides mortgage insurance for:

• Assisted living facilities
• Nursing homes
• Intermediate care facilities
• Board and care homes
• Memory care facilities

This program enables affordable financing and refinancing of residential care facilities, offering favorable terms often unavailable through conventional lending sources.

Proven Track Record

We have extensive experience representing long-term care providers obtaining refinancing of existing debt through the Section 232 program. Our firm has served as lead borrower’s counsel in HUD-insured loans aggregating in excess of $80 million, delivering smooth closings and satisfied clients.

Complex but Navigable

HUD-insured financing transactions require navigating:

• Pre-application requirements and feasibility analysis
• Firm commitment applications
• Environmental reviews and assessments
• Detailed financial projections and operating budgets
• Physical needs assessments
• Management certifications and operator approval
• Extensive closing documentation
• Ongoing compliance and reporting obligations

Expert Guidance

Our attorneys guide long-term care clients through every stage of HUD-insured financing transactions, from initial feasibility assessment through closing and beyond. We handle the regulatory complexity so you can focus on operating your facility and serving residents.

Whether you are refinancing to improve cash flow, funding facility improvements, or structuring acquisition financing, we bring the specialized experience needed to successfully navigate HUD’s requirements and achieve your financing objectives.