New Delaware Chapter 11 Filing – Bostwick Laboratories, Inc., et al.
Bostwick Laboratories, Inc. and its parent holding company have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 17-10570-BLS). Bostwick, which is headquartered in Uniondale, New York, provides laboratory testing services to independent physicians nationwide, with a specific emphasis on urology services. Bostwick’s petition lists its estimated assets between $1 – $10 million and its estimated liabilities between $50 – $100 million; Bostwick’s petition also asserts, however, that funds will be available for distribution to unsecured creditors. According to the First Day Declaration, Bostwick’s filing was caused by deepening cuts, beginning in 2013, to Medicare reimbursement rates for many of the services it offers. Bostwick began marketing itself in August 2016 and now enters Chapter 11 with a pre-arranged DIP Lender and Stalking Horse Bidder, Poplar Healthcare, PLLC. Donlin Recano & Company, Inc. is the proposed claims agent. The cases have been assigned to the Honorable Brendan Linehan Shannon.
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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