Alleon Healthcare Capital (“Alleon”), a specialty finance company focused on providing healthcare accounts receivable financing, medical accounts receivable factoring, and cash flow solutions to medical providers in the U.S., recently closed a $5,000,000 debtor in possession asset-based loan to a specialty pharmacy in Texas (“Company”).
The Company distributes limited distribution drugs in southern Texas with a focus on diabetes-related medications, migraine, and ophthalmic medications, as well as general brand medications.
The Company filed for bankruptcy protection after discovering that the seller of the Company withheld critical information regarding inventory values and vendor payables. Bankruptcy protection was used to prove wrongdoing by the seller and shortly thereafter Alleon was approached with a request to leverage the Company’s medical accounts receivable. The financing was used to reorganize and accommodate growth. Alleon was able to structure the transaction as a financing facility made up of medical receivables that are billed to commercial and government insurance carriers with an advance rate of 80% on eligible receivables.
"We are thrilled to work with the Company, which is providing limited distribution medications to its community in an efficient and customer friendly manner," stated Ben Rutkevitz, Vice President of Business Development at Alleon. "This financing facility will help the Company reorganize, support its growth and eventually be able to exit bankruptcy."
About Alleon: Alleon Healthcare Capital, a division of Alleon Capital Partners LLC, is a specialty finance company focused on providing cash flow solutions for healthcare providers in the U.S. that are unable to secure financing through conventional sources. Since 2009, Alleon has worked with providers nationwide, as long as they receive payments from Medicare, Medicaid, Commercial Insurances, Private Insurances, HMO/PPOs, Managed Care, No-Fault/PIP carriers, Worker’s Compensation carriers, and Letter of Protection (Personal Injury) cases.
