Orion Healthcorp and 20 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Eastern District of New York, lead case number 18-71748.
The Company, which provides outsourced business services to physicians, is represented by Thomas R. Califano of DLA Piper. According to a corporate release, the filing was initiated in order to “facilitate an orderly and efficient sale of its businesses.” The Company is in active discussions with several interested parties, is working to finalize terms and expects to announce asset purchase agreement(s) in the near term.
Businesses included in the Chapter 11 filings and related sale process are as follows: Allegiance and Orion Healthcorp, the Company’s two revenue cycle management businesses; Integrated Physician Solutions, which contains both physician practice management and group purchasing capabilities; and the holding company for New York Network Management (NYNM). The NYNM independent practice association and management company that collectively provide contracting and credentialing services to independent New York physicians are not included in the filings, although they will be included in the sale process.
“After evaluating a range of possible alternatives, Constellation has determined that our various business divisions will be better positioned for long-term growth and success under new ownership with the financial strength necessary to invest in their offerings and opportunities,” said interim C.E.O. Timothy J. Dragelin. Orion Healthcorp has secured a commitment for $7.5 million in debtor in possession financing from Bank of America to support its ongoing operations during the sale process.
A corporate release explains, “When the Board of Directors became aware that there were discrepancies in the Company’s stated and actual earnings, it took immediate action, including removing a number of executives who participated in these activities and retaining outside legal and forensic accounting counsel to conduct an investigation of the matter.”
Read more medical bankruptcy news.
The post Orion Healthcorp Bankruptcy appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.