White Wilson Medical Center PA - Case Summary
Business Description The Debtor is the largest private physician group providing primary care and outpatient services on the Emerald Coast of Florida. The mu...
Business Description
The Debtor is the largest private physician group providing primary care and outpatient services on the Emerald Coast of Florida. The multi-specialty medical practice operates an ambulatory surgery center and offers services across more than 20 medical fields, including Cardiology, Gastroenterology, Neurology, Radiology, Surgery, and Pediatrics.
- The practice consists of approximately 58 medical providers and 232 staff members.
The Debtor reported gross revenue of approximately $60.4 million for the year ending Dec. 31, 2024, an increase from $59.1 million in 2023. For the year-to-date period through July 31, 2025, gross revenue was approximately $34.4 million.
Corporate History
The multi-specialty medical practice and clinic was founded in 1952 by Dr. Henry C. White and Dr. Joseph C. Wilson.
Operations Overview
The Debtor operates its business from twelve leased offices across six cities in Florida: Fort Walton Beach, Crestview, DeFuniak Springs, Destin, Navarre, and Niceville.
Workforce and Contracts
- As of the petition date, the Debtor employed approximately 290 non-insider individuals. The bi-weekly payroll is approximately $608,639, excluding officer salaries.
- The Debtor has individual employment contracts with its 29 physicians and 29 nurse practitioners and physician assistants. The company intends to file an omnibus motion to assume these executory contracts to ensure continuity of patient care.
- The Debtor was current on all prepetition payroll and sales tax obligations as of the filing date.
Leadership and Compensation
- The Debtor's senior leadership includes John C. Dali, MD (President and Sole Shareholder), Kenneth Persaud, MD (CEO), Aaron Henry (CFO), Krishan Nagda, MD (CTO), and Ian Bethea (COO). The company will seek court approval for officer salaries.
- Members of the Board of Directors do not receive a salary but are typically compensated $1,500 per board meeting attended.
Prepetition Obligations
The Debtor’s prepetition capital structure includes secured debt, deferred compensation obligations, and significant general unsecured claims.
Secured Debt
- INS Bank: Approximately $4.5 million is outstanding, composed of a ~$4.1 million loan and a ~$352,000 line of credit. The obligations are secured by a UCC-1 lien on the Debtor’s cash, bank accounts, and accounts receivable.
- Itria Ventures LLC: Approximately $290,769 is owed in connection with a Receivables Sales Agreement, secured by a UCC-1 lien on the Debtor’s cash and accounts receivable.
Unsecured and Other Obligations
- General Unsecured Claims: The Debtor reports approximately $23.7 million in general unsecured claims, which include obligations to vendors, service providers, and affiliate lenders.
- Certain merchant cash advance (MCA) lenders that did not record UCC-1 financing statements will be treated as general unsecured creditors, including Austin Business Finance LLC, Capybara Capital LLC, Newco Capital Group VI, LLLC, and Mako Funding LLC.
- Deferred Compensation: A subset of physicians is entitled to deferred compensation. A portion of this amount, totaling $15,150, may be entitled to a priority claim under section 507(a)(4) of the Bankruptcy Code.
Events Leading to Bankruptcy
The Debtor’s financial distress stems from a significant decline in cash flow over the past several quarters, driven by reimbursement delays, reduced patient volumes, and rising operational costs. To cover working capital shortfalls, the company took on multiple merchant cash advance (MCA) loans with high interest rates, resulting in unsustainable monthly debt service payments averaging between $400,000 and $450,000.
- The combination of lower revenue and a heavy debt service burden made it increasingly difficult for the practice to meet its financial obligations.
- Despite efforts to restructure debt and implement cost-saving measures, the Debtor was unable to achieve financial stability out of court.
On Oct. 3, 2025, the Debtor filed for Chapter 11 protection to reorganize its finances, stabilize operations, and continue providing medical services as a going concern. The primary goal of the filing is to develop a plan of reorganization that ensures continuity of patient care while maximizing value for all creditors.
- As part of its first day relief, the Debtor intends to file motions seeking authority to use cash collateral and to pay prepetition wages, salaries, and other employee benefits.