Osborne Clarke advises on healthcare liquidation

International legal practice Osborne Clarke has recently advised on the compulsory liquidation of NRS Healthcare, a prominent national supplier of equipment crucial for patient care. The company, headquartered in Leicestershire, has been instrumental in providing essential tools such as wheelchairs, hoists, specialist beds, and fall-monitoring pendants to approximately 40 local authorities across England. These arrangements support patients who are discharged from hospitals and those requiring ongoing medical and social care at home.

Despite the liquidation, special managers from PwC have been appointed to oversee operations, allowing NRS to continue trading during this challenging period. The decision for liquidation was made after exhaustive negotiations with key suppliers were unsuccessful. Consequently, the Osborne Clarke team moved to place NRS's key operating companies into compulsory liquidation through an expedited, out-of-hours court application.

Following the appointment of the Official Receiver as liquidator, PwC’s special managers were set in place. This process has been deemed essential for achieving a seamless transition of the business and assets from NRS to new suppliers in the interest of both national and public welfare.

Will Gunston, partner and head of restructuring and insolvency at Osborne Clarke, led a talented team that included partners Nigel Boobier and Tom Frapwell, legal director Claire Bundy, associate director Anna Perry, senior associates Sam Furse and Georgie Green, and trainee solicitor Luke Hopper. Gunston remarked, “We worked closely with the board of NRS, the company’s senior leadership team, the Official Receiver and PwC, in this complex and technical assignment.” He further noted that “utilising a liquidation procedure to allow the company to continue to trade for the benefit of all key stakeholders is rarely invoked, previous examples having included Carillion, British Steel and Thomas Cook.”

Osborne Clarke's experience with high-profile restructurings and insolvencies underscores their capability in navigating such complex situations while prioritising the interests of stakeholders involved.