HEALTHCO INTERNATIONAL, INC.

Case Highlights

• Managed the wind down of a significant operation
• Pursued estate recoveries through litigation of a failed LBO
• Aggressively managed claims yielding a higher return to creditors

Case Narrative

DSI served as the Chapter 7 Trustee for this international distributor of dental products, once the world’s second largest, with over 4,000 employees, $400 million in annual sales and operations in the U.S., Canada, Israel, the United Kingdom, France and other parts of Europe.  In its time, the case was the largest Chapter 7 case pending in New England, as well as one that attracted a significant amount of national attention. This was due to the fact that, although there were a number of advantageous settlements reached by the trustee in favor of the estate prior to the inception of the trial, Healthco was one of the first cases in which a full-blown jury trial occurred at the Federal District Court level regarding the issue of fraudulent conveyances and transfers emanating from a massive leveraged buyout. Despite having the jury rule against the estate on the LBO claims, the trustee significantly reduced claims of over $800 million down to approximately $81 million and settled professional malpractice claims for $20 million. As a result, a significant distribution was ultimately made to the creditors in a case that was initially adjudicated an administratively insolvent case.