On June 12, 2023 CARD Intermediate Holdings II, LLC and affiliates filed for chapter 11 protection in the Southern District of Texas (Case No. 23-90711). The Debtor reports Assets of $50M-$100M and Liabilities of $100M-$500M. The Petition states funds will not be available to Unsecured Creditors.
Matthew D Cavenaugh
Jackson Walker LLP
HENDERSON, N.V., June 11, 2023 (GLOBE NEWSWIRE) -- Center for Autism and Related Disorders (CARD®; centerforautism.com), today announced that the company has entered into an asset purchase agreement (“the APA”) with Pantogran LLC, led by Dr. Doreen Granpeesheh, founder and former CEO of CARD, pursuant to which Pantogran LLC will acquire substantially all of CARD’s assets. Under the terms of the APA, Pantogran LLC will serve as the “stalking horse bidder” in a court-supervised auction process. The company expects to move through this process on an expedited basis and complete the transaction within 60 days.
“Today’s announcement is the culmination of a comprehensive process to strengthen our financial foundation while maintaining outstanding care for our patients and their families,” said Jennifer Webster, Chief Executive Officer of CARD. “Dr. Granpeesheh's interest in pursuing this transaction is a testament to the value of our centers, our team, and the services we provide. We believe this is currently the best path forward for our company and look forward to building on our strengths with Dr. Granpeesheh's strong support.”
To facilitate the transaction process, CARD today filed voluntary petitions for a court-supervised restructuring under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. CARD will operate in the ordinary course throughout the process and remains focused on providing care to patients and working with suppliers as normal. This action is expected to provide for a quick and orderly sale of the company’s assets under Section 363 of the Bankruptcy Code. Accordingly, the APA is subject to higher and otherwise better offers, among other conditions.
In connection with the proposed sale transaction, CARD has received a commitment for approximately $18 million in new money debtor-in-possession (“DIP”) financing from its existing secured lenders. Upon Court approval, this new financing, together with cash generated from the company’s ongoing operations, is expected to support the business throughout the sale process.
CARD has filed a number of customary motions seeking court authorization to continue to support its operations during the court-supervised sale process, including the continued payment of employee wages and benefits. The company intends to pay vendors, suppliers and other trade creditors in full under normal terms for goods and services provided during the bankruptcy case. CARD expects to receive approval for these requests.
Additional information regarding the court-supervised process is available at https://cardrestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the company’s claims agent, Stretto, at https://cases.stretto.com/CARD, by calling Stretto toll-free at (855) 925-7872 (or +1 (949) 892-1668 for calls originating outside of the U.S.), or by sending an email to TeamCARD@stretto.com.
Livingstone Partners is serving as financial advisor to CARD, Kirkland & Ellis is serving as its legal advisor and Portage Point Partners is serving as restructuring advisor, with Steven Shenker serving as Chief Restructuring Officer. Calex Partners is serving as exclusive financial advisor, Nevers, Palazzo, Packard, Wildermuth & Wynner is serving as legal advisor, and Locke Lord is serving as bankruptcy and restructuring counsel to Dr. Granpeesheh and Pantogran LLC.
About Center for Autism and Related Disorders (CARD)
CARD was founded in 1990 and employs a dedicated team of exceptional clinicians across the nation. CARD treats individuals of all ages diagnosed with autism spectrum disorder (ASD) using the principles of applied behavior analysis (ABA), which is empirically proven to be the most effective method for treating individuals with ASD. CARD is committed to success for every individual it treats, so that each person can fulfill their maximum potential, find their own unique voice, and achieve happiness in life. For more information, visit centerforautism.com.