New Delaware Chapter 11 Filing – Active Care, Inc.
Active Care, Inc., and its wholly-owned subsidiary 4G Biometrics, LLC, have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11659). In its Petition, Active Care, a health analytics and reporting company for people with diabetes based in Orem, Utah, reports an estimated $1–$10 million in assets and $10–$50 million in liabilities. According to the First Day Declaration, while Active Care has had ongoing financial difficulties for years, its filing was primarily driven by the loss of approximately 50% of Active Care’s individual clients when the State of Louisiana end its relationship with Active Care. The First Day Declaration further explains that Active Care enters Chapter 11 intending to sell substantially all of its assets under Section 363 of the Code with Telcare, LLC, serving as the stalking horse purchaser. Telcare is a subsidiary of Biotelemetry, Inc., Active Care’s largest unsecured creditor and a key supplier. Active Care also enters Chapter 11 having secured $800,000 in DIP Financing from its pre-petition senior lender, Partners for Growth IV, L.P. A claims and noticing agent has not yet been proposed. The cases have been assigned to the Honorable Laurie Selber Silverstein.
Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter. Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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