The rumors finally came true! Spheris filed for Chapter 11 bankruptcy in a Delaware court on Wednesday. And today they announced plans to be acquired by competitors MedQuist and CBay, portfolio companies of CBay Systems Holdings.
In order to commence the transaction, in which MedQuist will buy Spheris’ domestic assets and CBay its India operations, Spheris has filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware. Prior to court approval of the agreement, there will be a court-supervised competitive bidding process to solicit other qualified bidders. If bidders emerge, an auction would be held prior to a hearing approving the sale. Spheris India did not file for bankruptcy.
Prospective buyers interested in all or some of Spheris’ assets will likely have 30 days after the court approves the auction to submit their bids. The court will choose the winner and approve the final sale.
Other possible players who might bid in, as reported here, are Brentwood-based Webmedx Inc., fourth largest medical transcription service provider in the US; and Atlanta-based Transcend Services Inc., US' third largest player.
PS: Check this news article which sheds light on what's been happening behind the scenes at the troubled medical transcription company
In order to commence the transaction, in which MedQuist will buy Spheris’ domestic assets and CBay its India operations, Spheris has filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware. Prior to court approval of the agreement, there will be a court-supervised competitive bidding process to solicit other qualified bidders. If bidders emerge, an auction would be held prior to a hearing approving the sale. Spheris India did not file for bankruptcy.
Prospective buyers interested in all or some of Spheris’ assets will likely have 30 days after the court approves the auction to submit their bids. The court will choose the winner and approve the final sale.
Other possible players who might bid in, as reported here, are Brentwood-based Webmedx Inc., fourth largest medical transcription service provider in the US; and Atlanta-based Transcend Services Inc., US' third largest player.
PS: Check this news article which sheds light on what's been happening behind the scenes at the troubled medical transcription company
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