The script is repeated in the last great bankruptcy of the oral sector. The Deloitte group has been appointed by the judge as bankruptcy administrator for Dentix, the chain of dental clinics that announced its insolvency last October due to the inability to meet its financial commitments.
The auditor he directs in Spain Fernando Ruiz She was already in charge of managing the Vitaldent bankruptcy in 2016. In that case, the dental clinic chain managed to avoid bankruptcy by sale for 18 million euros to the JB Capital Markets fund, directed by Javier BotÃn, and the condition that he invested 40 million in his ‘rescue’. The recovery was a success and three years later JB Capital ended up selling the firm to the North American investment fund Advent for 350 million.
Will the same happen with Dentix? For the time being, Advent is interested in absorbing the group in competition to increase its size in Spain with the addition of more than 300 new clinics to its portfolio. It would create, together with Vitaldent, a dental giant in Spain.
The government would also welcome another company to take over the Dentix business if it were to quickly deal with the more than 100,000 treatments that have been left in the air with the closure of the clinics. The appointment of the insolvency administrator is a key step in the process as it unlocks potential negotiations.
No agreement with KKR
At the beginning of October, the Dentix group made the request for the bankruptcy public due to the uncertainty about the achievement of a refinancing or short-term investment agreement and the constant deterioration of the business.
Specifically, it claimed that “the consequent serious defaults” of the KKR investment fund with the company had had “a devastating impact on the entire business and in particular on the treasury and cash needs”.
In the order, cited by Efe, the judge requires the bankruptcy administration to communicate “without delay” and individually the declaration of the bankruptcy to each of the identified creditors, either by telematic means, computerized or electronic. In addition, they must disclose the existence of their credits within a month from the publication of the edict in the Official State Gazette (BOE).
The judge also admits the advance agreement proposal for processing, which must be evaluated by the bankruptcy administration, after verifying the accessions of the creditors that represent 10% of the liabilities.
The order is known two weeks after the temporary closure of Dentix clinics throughout Spain, whose staff – about 2,600 people – has been included in a temporary employment regulation file (ERTE) due to force majeure than already partially applied.
In an internal letter, Dentix indicated that the measure sought to “preserve the establishments and assets” of the company, and that it was temporary until the bankruptcy administration adopted “the decisions it deems appropriate”.
Likewise, the company urged all clinics to ensure that the documentation, goods, materials and inventory in each one of them be “conveniently packaged and stored” within the facilities.
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