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08/20/2025
Case Study: Navigating bankruptcy with strategic financial advisory
Discover how CohnReznick guided 4 West Holdings through bankruptcy with advisory expertise and forensic support.
CohnReznick served as the financial advisor to the Official Committee of Unsecured Creditors in the 4 West Holdings, Inc . and affiliates complex bankruptcy case, delivering strategic advisory, forensic analyses, valuations, and successful plan negotiations.
About 4 West Holdings, Inc.
4 West Holdings, Inc. was a healthcare services company based in Nashville, Tennessee, that owned and operated over 42 skilled nursing facilities before filing for bankruptcy.
Alongside 134 of its affiliates and subsidiaries, the company filed voluntary petitions for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas on March 6, 2018. The case was fast-tracked with first-day pleadings that included a Restructuring Support Agreement (RSA), a debtor-in-possession (DIP) facility with the pre-petition lender, the transfer of half of the facilities to a new operator, and a settlement with the landlord.
CohnReznick was retained to serve as financial advisor and forensic accountant to the Unsecured Creditors Committee, bringing deep experience in bankruptcy proceedings and healthcare operations.
Challenges to Success
The complexity of the case required immediate and strategic action. The Unsecured Creditors Committee needed a trusted advisor to:
- Monitor the Debtors’ operations and financial performance
- Enhance the sales process for the Debtors’ assets
- Investigate potential fraudulent transfers and related-party transactions
- Challenge the terms of the RSA and DIP facility
- Negotiate a viable disposition of the Debtors’ assets
Action Taken
CohnReznick’s team worked closely with the Committee and legal counsel to:
- Monitor the Debtors’ operating results and provide timely updates to the Committee
- Actively participate in due diligence and asset solicitation efforts
- Challenge the RSA and DIP facility terms to protect creditor interests
- Prepare and support discovery requests
- Conduct forensic reviews of related-party transfers and operational interdependencies
- Investigate fraudulent conveyances
- Provide valuation expertise.
- Lead negotiations for a plan of liquidation
Seeing Results
This strategic litigation and investigative approach resulted in a path forward that maximized value for creditors and helped ensure operational continuity for the skilled nursing facilities under new ownership by prompting insiders to engage in meaningful negotiations; successfully negotiating a plan of liquidation with the Debtors, banks, and the Committee; and overseeing the successful sale of the Debtors’ operations, we were able to help deliver a favorable outcome in a highly complex case.
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This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.