January, 2017 – Gordian Group was awarded for its nomination of Alphatec for Turnarounds & Workouts’ Successful Restructurings of 2016. View complete report here: Turnarounds & Workouts January 2017 issue (page 7).
Alphatec Restructuring Firm: Gordian Group (Peter Kaufman, Henry Owsley, David Herman, Patricia Caldwell, Dennis McGettigan, Fred Zeidman)
Counsel to Debtor: Latham & Watkins (Matt Bush )
Alphatec, a publicly-traded medical technology company focused on spinal fusion technologies, had seen its revenue and margins drop as a result of an in-process restructuring of its distribution channels. At the same time, the company had been forced to tap a high-coupon loan to fund a litigation settlement. The company and its advisors pursued a strategy whereby Alphatec sold its international operations for $80 million to Globus Medical,which provided Alphatec a term loan to fund the restructuring of its U.S. operations. Proceeds from the transaction were used to right-size the company’s balance sheet and fund capital expenditures necessary to renew growth in Alphatec’s U.S. operations. Absent a transaction, Alphatec would have run out of cash and have had to file for bankruptcy protection, wiping out shareholders in the process.