New Chapter 11 Filing - Bostwick Laboratories Inc.

in

Bostwick Laboratories Inc.

  • 3/15/17 Recap: Uniondale New York based "independent full-service anatomic pathology laboratory and specialty provider"...gulp...deep breath..."of diagnostic testing services for urologists and gynecologists" filed for bankruptcy to sell to a stalking horse bidder, Poplar Healthcare PLLC. In the filing declaration the company blames severe cuts in Medicare rates for the filing, making no mention of what's glaring in its petition, i.e., that the Department of Justice is the largest creditor holding an unsecured settlement claim against the company for the company's purported breach of the False Claims Act - a claim emanating from allegations of kickback payments to physicians in exchange for referrals. Not shady at all. That last bit is really the only reason why we're even highlighting this case. Well, and that this is Pepper Hamilton LLP's second recent filing (General Wireless Outfitters being the first).
  • Jurisdiction: D. of Delaware
  • Capital Structure: $12.5mm debt ($1.8mm funded - Healthcare Financial Solutions LLC, an affiliate of Capital One NA), $950k second lien notes, $40mm unsecured notes.     
  • Company Professionals:
    • Legal: Pepper Hamilton LLP (David Stratton, Evelyn Meltzer, John Schanne II)
    • Investment Banker: Leerink Partners LLC (Jeff Danesis)
    • Chief Restructuring Officer: Carroll Services LLC (James Patrick Carroll)
    • Claims Agent: Donlin Recano & Co. Inc. (*click on company name for docket)
  • Other Parties in Interest:
    • Metalmark Capital Holdings LLC
      • Legal: Ropes & Gray LLP (James A. Wright III, Stephen Moeller-Sally) & (local) Womble Carlyle Sandridge & Rice LLP (Mark Desgrosseilliers)
    • Healthcare Financial Solutions LLC
      • Legal: Quarles & Brady LLP (John Harris, Brian Sirower, Amelia Valenzuela)
    • Official Committee of Unsecured Creditors
      • Legal: Pachulski Stang Ziehl & Jones LLP & (local) Sheppard Mullin LLP

 

Updated 3/23/17