Adeptus hires restructuring officer in latest sign of trouble
A Lewisville, Texas-based company that operates nearly 100 freestanding emergency rooms across the U.S. has hired a chief restructuring officer and taken out a $7.5 million short-term loan.
It’s the latest sign that the struggling Adeptus Health may be in need of major financial CPR. Its stock price has dramatically slumped over the past year, trading at more than $73 a share 52 weeks ago, but closing at just over $2 a share on Monday.
The news comes just days after Adeptus delayed release of its annual financial report to the U.S. Securities and Exchange Commission. It anticipated a net loss of upwards of $560 million for 2016 and expressed “substantial doubt” that it can continue without securing “committed long-term financing.”
Andrew Hinkelman, a San Francisco-based consultant with the financial advisory firm FTI has been hired to help “minimize disruption” to Adeptus’ operations, the company said in an 8-K filing posted Monday.
Hinkleman, according to his bio, has advised on bankruptcies and specializes in restructuring and performance improvement for underperforming companies. Hinkleman could not be reached for comment Monday.
Adeptus also said that it had secured a short-term loan, money that should allow it to address immediate cash flow needs until it can secure more permanent financing.
Adeptus Health owns and operates the largest network of independent freestanding emergency rooms in the U.S., with facilities in Texas, Colorado, Arizona and Ohio.
Founded in 2002, the company grew rapidly after it went public in 2014. While it owned 14 freestanding facilities at the end of 2012, that number rose to 97 freestanding and three fully licensed general hospitals by third quarter of 2016.
The company had more than 3,200 employees on staff, including about 900 nurses and 700 radiology technologist, at the end of 2015.
Company shares took a major hit in November when Adeptus reported an $11.7 million loss in the third quarter. At the time, analysts predicted that without emergency financing the company only had enough cash to fund just two additional quarters of operation.