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.
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