Key Takeaways
- • Americore Holdings LLC CEO Grant White alleges that Delray Beach, Florida-based lender Third Friday Total Return Fund LP forcibly seized control of company bank accounts on December 27, 2019, triggering the Chapter 11 bankruptcy filing in U.S. Bankruptcy Court Eastern Kentucky District.
- • Third Friday principal Michael E. Lewitt allegedly failed to deliver millions in promised refinancing funds while simultaneously using Americore confidential information to raise capital for itself, directly undermining the company's restructuring efforts.
- • The loan and security agreement between Americore and Third Friday, originally executed January 2, 2018 and amended May 1, 2018, gave the lender significant control over cash usage at Americore-affiliated hospitals including St. Alexius Hospital (St. Louis) and Ellwood City Medical Center.
- • Third Friday declared Americore in default on December 24, 2019, then escalated efforts to extract cash from company accounts, according to White's bankruptcy court filings, despite having no direct liability to the hospitals whose funds were allegedly redirected.
- • The bankruptcy petition indicates Americore had minimal liquid assets at filing, with secured creditors owed $6.3 million and only $950,000 in total assets available.
Summary
Americore Holdings LLC filed for Chapter 11 bankruptcy in late December 2019 following what CEO Grant White characterizes as aggressive financial control and account seizure by a secured lender. In court filings submitted to U.S. Bankruptcy Court Eastern Kentucky District, White alleged that Third Friday Total Return Fund LP, a Delray Beach, Florida-based investment fund led by principal Michael E. Lewitt, unlawfully hijacked Americore's bank accounts on December 27, 2019, and attempted to remove White from operational control of the company.
The relationship between the parties originated through a loan and security agreement dated January 2, 2018, with an amendment executed May 1, 2018. Under these agreements, Third Friday gained significant influence over Americore's cash management and operational decisions. White alleged that since entering the arrangement, Lewitt and Third Friday "have in part directed and controlled the debtor's use of cash," including funds designated for St. Alexius Hospital in St. Louis, Missouri, and Ellwood City Medical Center—entities to which Third Friday held no direct contractual liability.
White's filing contends that Third Friday breached its obligations by failing to deliver millions in promised refinancing funds while simultaneously undermining restructuring efforts. Critically, White alleged that Lewitt used confidential information about Americore to solicit capital on behalf of Third Friday rather than supporting the debtor's refinancing, which "chilled the market" and damaged Americore's ability to secure alternative financing. At one point, White stated that Third Friday affirmatively ordered Americore to cease refinancing activities. On December 24, 2019, Third Friday formally called Americore's loan in default and subsequently escalated efforts to extract cash from the company's operating accounts.
At the time of bankruptcy filing, Americore's financial condition was severely constrained, with secured creditors holding claims of $6.3 million against only $950,000 in total identifiable assets and no cash on hand. The Ellwood City Medical Center, a key facility in the Americore network, had already ceased operations by the time of the Chapter 11 petition.
The relationship between the parties originated through a loan and security agreement dated January 2, 2018, with an amendment executed May 1, 2018. Under these agreements, Third Friday gained significant influence over Americore's cash management and operational decisions. White alleged that since entering the arrangement, Lewitt and Third Friday "have in part directed and controlled the debtor's use of cash," including funds designated for St. Alexius Hospital in St. Louis, Missouri, and Ellwood City Medical Center—entities to which Third Friday held no direct contractual liability.
White's filing contends that Third Friday breached its obligations by failing to deliver millions in promised refinancing funds while simultaneously undermining restructuring efforts. Critically, White alleged that Lewitt used confidential information about Americore to solicit capital on behalf of Third Friday rather than supporting the debtor's refinancing, which "chilled the market" and damaged Americore's ability to secure alternative financing. At one point, White stated that Third Friday affirmatively ordered Americore to cease refinancing activities. On December 24, 2019, Third Friday formally called Americore's loan in default and subsequently escalated efforts to extract cash from the company's operating accounts.
At the time of bankruptcy filing, Americore's financial condition was severely constrained, with secured creditors holding claims of $6.3 million against only $950,000 in total identifiable assets and no cash on hand. The Ellwood City Medical Center, a key facility in the Americore network, had already ceased operations by the time of the Chapter 11 petition.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.