Pacific Eyenet
The firm represented Pacific Eyenet in its chapter 11 case. Pacific Eyenet provided management and billing services to Pacific Eye Inc., a Medical Group (“PEN MG”), a separate entity with an emphasis on the delivery of ophthalmic services. The debtor and PEN MG cooperatively operated fifteen clinics throughout Southern California. Prepetition, Pacific Eyenet’s only source of revenue was pursuant to a management agreement with PEN MG. PEN MG asserted that it terminated that agreement prepetition based on asserted breaches of contract. Pacific Eyenet asserted that it reserved its right to challenge the validity of the purported termination. The firm helped Pacific Eyenet negotiate with PEN MG for an amicable “separation” of assets and liabilities to resolve their differences. Because Pacific Eyenet’s efforts to obtain another source of income were unsuccessful, it was forced to liquidate its assets. The firm then assisted the debtor in negotiating a “separation agreement” with PEN MG, assisted in the sales of various clinic rights to the doctors working in those clinics, and assisted in closing other clinics and transferring assets as appropriate. During this period the firm also assisted the Debtor in negotiating use of cash collateral with its secured lender. After this case converted to chapter 7, the firm worked closely with counsel for the Trustee to ensure a smooth transition.
