New Chapter 11 Filing - Dynamic International Airways LLC

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Dynamic International Airways LLC

  • 7/19/17 Recap: North Carolina based "aviation enterprise" that services transportation between, among other places, JFK International Airport and so-called secondary cities like Nanjing China, filed for bankruptcy. The company is allegedly approved to fly to more Chinese cities than any other US-based carrier. Not too shabby for an "aviation enterprise" that, when described like that, sounds like it should be piloted by Pablo Escobar. The company pegs operational challenges including rapid management turnover as one cause of bankruptcy. Another is a series of lawsuits. Aside from a $6mm security interest, the capital structure consists of "unsecured debt" which sounds suspiciously like equity held primarily among the two principals, one of whom is providing a $6mm DIP. 
  • Jurisdiction: MD of North Carolina
  • Capital Structure: $6mm secured debt
  • Company Professionals:
    • Legal: Garman Turner Gordon LLP (Gerald Gordon) & (local) Bell Davis & Pitt (Daniel Bruton)
    • Financial Advisor: MJAC LLC d/b/a Allison Consulting

New Chapter 11 Filing - Morehead Memorial Hospital

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Morehead Memorial Hospital

  • 7/10/17 Recap: North Carolina non-profit 108-bed general acute care community hospital and owner of a 121-bed skilled nursing facility filed for bankruptcy. The healthcare provider noted the following reasons for the bankruptcy filing: (i) decreased patient volume, net revenue and free cash flow due, in large part, to the delivery of medical services occurring increasingly in ambulatory and emergency room settings; (ii) low reimbursement rates for medical services; (iii) expensive and only partially-reimbursed service in fulfillment of its non-profit mission; (iv) rising costs and increased competition (including competition for physicians given the hospital's rural nature); and (v) debt and legacy pension liability. The hospital will use the bankruptcy period to undertake both an operational and balance sheet restructuring while contemporaneously seeking a potential strategic healthcare provider partner. 
  • Jurisdiction: M.D. of North Carolina (Judge Kahn)
  • Capital Structure: $34mm debt     
  • Company Professionals:
    • Legal: Waldrep LLP (Thomas Waldrep Jr., Jennifer Lyday, Francisco Morales)
    • Financial Advisor: Grant Thornton LLP (Scott B. Davis)
    • Investment Banker: Hanlon Hammond Camp LLC (Michael Lane)
    • Claims Agent: Donlin Recano & Company Inc. (*click on company name above for free docket access)

Updated 7/13/17 6:36pm CT

First Day Declaration

First Day Declaration