Pharmaceutical & Durable Medical Supply Distributor Division: Phoenix Management Services Client Located in the Midwest, the Client was a privately held distributor of pharmaceutical and durable medical supply products to skilled nursing facilities, group homes, assisted living facilities, correctional institutions and home healthcare providers. Problem As a result of numerous industry changes impacting the Company, it began suffering cash flow problems that lead to a significant loss of business as service levels declined. This business erosion resulted in the Company defaulting on its $3.0 million line of credit and the stretching of vendor payables significantly beyond acceptable terms. In addition to its bank debt, the Company carried an additional $3.2 million of secured debt owed to

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