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US – Lender Forecloses on Staffing Firm

03 May 2012

Arcadia Resources Inc. (OTCBB: KADR.PK), a provider of home healthcare and healthcare staffing, reported that it no longer owns any operating businesses after a lender foreclosed on the company, according to a filing with the U.S. Securities and Exchange Commission. The company also announced in an earlier filing that it settled a home healthcare class action lawsuit.

Arcadia previously sold other divisions. Home healthcare and healthcare staffing were its remaining operations.

“Registrant intends to wind-down its affairs and expects that holders of the registrant’s outstanding unsecured indebtedness will receive no payment, or nominal payment, on their claims,” according to the filing. “After the foreclosure transaction, registrant estimates that it will have more than $33 million in unsecured current liabilities. Registrant estimates that it will have less than $1 million in assets, all of which will be used to wind down the registrant’s affairs.”

For the full SEC filing, click here.

Arcadia also announced last month that it settled a class action case brought by a home healthcare worker in Northern California who claimed the company didn’t pay overtime, didn’t provide for meal and rest breaks and failed to pay final wages in a timely manner, according to a filing with the U.S. Securities and Exchange Commission.

The settlement calls for Arcadia to pay $623,000, according to the filing. The settlement received approval from the court on April 17.

The lawsuit, Douglas et al vs. Arcadia Health Services Inc., was first filed on June 20, 2011, by Ruth Douglas, a resident of San Anselmo, Calif.

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