Project Description
START
I-MED was part of failed private equity LBO. By 2011 I-MED was significantly over geared and in breach of bank covenants.
Majority of I-MED debt had been acquired by c.30 hedge funds with the company at risk of a high-profile corporate collapse.
Two key doctor partnerships had issued termination notices to leave the network, increasing the pressure for a restructure.
TRANSFORMATION
Established a warehouse to facilitate a consensual sale and prevent a receivership which would have led to a loss of hospital contracts.
Allegro executive appointed as interim CEO during restructure.
Successfully negotiated a JV agreement and a staged sale with the doctor partnerships that were at risk.
Worked closely with the doctors and management to agree a new strategic direction for the company.
Following financial restructure, a new board of directors, CEO and CFO were appointed.
THE RESULT
The consensual restructure saved I-MED business from a receivership and total collapse.
Since Allegro’s involvement, I-MED significantly increased earnings and the debt was restructured down to manageable levels.
In Dec-13 all remaining hedge fund debt was refinanced with longer term core debt.
In Mar-14 I-MED was sold to EQT partners generating strong returns for Allegro.