All Smiles Dental Center

Situation

All Smiles Dental Center (“ASDC” or the “Company”) was a privately-owned dental practice management company that serviced dental offices throughout the state of Texas and targeted the Medicaid market.  With in excess of $60 million in debt and significant deterioration in operating performance that was largely a result of  the suspension of Medicaid reimbursement for orthodontic services, the Company defaulted on its debt and was forced to file for bankruptcy.

Engagement

After the Company had spent a year in bankruptcy undertaking an operational and regulatory restructuring, Gordian was engaged to assist the private equity firm and the Company is facilitating an exit from Chapter 11.  This included conducting an extensive third party outreach program, as well as working closely with all parties around the table, including the Debtor and the Creditors Committee.

Outcome

Substantially all of the Company’s operations were acquired by a strategic competitor in the dental management space, facilitating a continuing operation for the Company’s doctors and other employees (including a settlement with the State of Texas that allowed for the continued operation as a Medicaid provider) and a combination of cash and equity in the merged entity that facilitated a consensual plan of reorganization among the Company’s creditor and equity constituencies.