Spheris Inc. Files Chapter 11: Plans To Sell

Posted on February 4, 2010 by Morris James Delaware

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.

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Boscov's, Inc. and Affiliates File Chapter 11 in Delaware

Posted on August 4, 2008 by Morris James LLP

Early this morning, August 4, 2008, Boscov’s, Inc. and 7 affiliated debtors filed Chapter 11 petitions in Delaware. The affiliates are: Boscov's Investment Company, Boscov's Department Store, LLC, Boscov's Finance Company, Inc., Boscov's PSI Inc., Boscov’s Transportation Company LLC, Retail Construction and Development, Inc. and SDS, Inc. Judge Kevin Gross is presiding over these cases.  The petition is here.

According to an affidavit filed by Michael J. Hughes, Executive VP-Capital Development for Boscov's, Inc. and Boscov's Department Stores, LLC, Boscov's Inc., through Boscov's Department Stores and other subsidiaries, owns and operates the nation's largest family owned, full-service department store chain, and currently operates 49 stores in Pennsylvania, New Jersey, Maryland, New York, Delaware and Virginia.

Mr. Hughes indicates in his affidavit that the collapse of the housing market, skyrocketing energy and gasoline prices and steadily increasing food costs, among other things, have resulted in a decline in the discretionary spending by consumers upon which the Debtors’ businesses depends. Tightening in the credit markets, including tightening of credit terms by Boscov’s trade creditors, is also noted as a factor in the filing.

The expressed goal of Boscov’s filing is to develop a business plan that will recast and streamline the Debtors’ capital and expense structure to position the Debtors to compete successfully in the broadline retail industry. In the short term, the Debtors anticipate the closing of approximately 10 unprofitable stores and the immediate liquidation of the inventory in those stores through going-out-of-business sales. Boscov's is looking to have a plan proposed in the fall with possible confirmation during the first quarter of 2009.
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