Daily News

View All News

VMS files bankruptcy, plans sale

January 11 2010
Staffing Industry Analysts North American Daily News

Symbio Solutions, which operates a healthcare vendor management system, filed for Chapter 11 bankruptcy protection last week. CEO Rodney Shifflette said the filing was made to facilitate a sale of the company.

Proceeds from the sale will go to creditors, Shifflette said. "Our intent is to do as much as we possibly can to get the vendors paid back."

The net proceeds of the sale going to creditors will include the majority of the proceeds minus legal fees, Shifflette said. However, the amount creditors receive may not be 100% of the amount owed, he said.

Plans call for an auction of the company later this month, and for the sale to close in February, Shifflette said.

According to the bankruptcy filing, Dallas-based Symbio has between 100 and 199 creditors. It had estimated assets between $1 million and $10 million, according to the filing; and it had estimated liabilities of between $10 million and $50 million.

Its largest staffing firm creditor was AMN Healthcare Services Inc., to which it owed almost $1.3 million, according to a court filing. AMN was followed by Supplemental Health Care, to which it owed $397,146.

Symbio ran into payment difficulties last summer after an issue rose with its former funding company, Sun Capital. However the company reported at the time it had fixed the problem of distributing funds to staffing firms on a going-forward basis.

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*