GT Restructuring, the restructuring unit of Greenberg Traurig in Germany, assisted nursing home operator DOREAFAMILIE in its restructuring as part of self-administration proceedings.
Berlin-based DOREA Group, one of the largest nursing-home operators in Germany, with 76 care facilities and around 5,500 employees, fell into crisis due to structural deficits at individual locations. Due to the unfavorable layout of some facilities, there was overcapacity that prevented their long-term utilization. Consequently, some of the group companies applied for insolvency proceedings to be opened.
GT Restructuring Partners Gordon Geiser and Jesko Stark were appointed as trustees in the three major proceedings conducted as debtor-in-possession proceedings. By way of self-administration, they succeeded in implementing a restructuring concept for three of the holdings and intermediate holding companies, continuing the use of 43 care facilities operated by these three companies and their subsidiaries. The concept was implemented as three interlinked insolvency plans, unanimously approved by the creditors at an all-creditors’ meetings.
In addition to Gordon Geiser and Jesko Stark, GT Restructuring Partner Benedikt de Bruyn was appointed insolvency administrator in the regular insolvency proceedings relating to additional DOREA-Group companies. Together, the three attorneys worked with new operators for almost all other facility takeovers. While some of the facilities have already been transferred to the new operators, the processes for the remaining facilities are at an advanced stage or in the process of implementation.
DOREA-Group, which operates under the DOREAFAMILIE brand, is one of the largest private care providers in Germany, focusing on traditional geriatric care, with 76 inpatient facilities, 17 locations with assisted living, and nine outpatient care services. In total, the group cares for approximately 7,500 people in need of care. Annual revenue in 2022 was approximately 280 million euros.