Spheris Inc. Files Chapter 11: Plans To Sell
On February 3, 2010, Spheris Inc. and 5 direct and indirect subsidiaries filed chapter 11 cases in the Bankruptcy Court for the District of Delaware. The case has been assigned to the Honorable Kevin Gross and is designated case no. 10-10352.
Mr. Robert L. Butler, CRO of the debtors, notes in his first day affidavit that the debtors “provide clinical documentation technology and services to health systems, hospitals and group medical practices located throughout the United States.” Events leading to the filings included changes in the clinical documentation industry including “significant technology developments as well as accelerated price pressures.” This resulted in declining revenues in the second half of 2008 and into 2009.
The debtors initiated a marketing strategy to sell all or substantially all of their assets. At the conclusion of that process, the debtors determined that a sale to CBay, Inc. and Medquist Transcriptions, Ltd. was the best opportunity and commenced the filing to consummate that sale transaction.
A Wall Street Journal article about the proposed sale can be found here.
