Advertisement

21st Century Oncology Bankruptcy Agreement Approved

Advertisement

The U.S. Bankruptcy Court approved 21st Century Oncology Holdings’ motion seeking entry of an order authorizing the Debtors to enter into an unwind agreement by and between Debtor 21st Century Oncology of New Jersey (21C) and non-debtor Health Management Services Organization (HMSO).

According to documents filed with the Court, “Over the last twelve months, the Joint Venture has operated at a loss of approximately $1.3 million in the aggregate. Additionally, on April 29, 2017, one of the Joint Venture’s two full-time oncologists terminated his employment. The second full-time oncologist’s employment will terminate as of August 25, 2017. As a result, the Joint Venture will have no full-time doctors on staff by the end of the month. The Joint Venture’s losses have been so severe that the Joint Venture has effectively shuttered the Voorhees Office and Hammonton Office. In light of the foregoing, 21C now desires to exit the Joint Venture pursuant to the Unwind Agreement.”

In addition, “The Debtors seek authority to enter into the Unwind Agreement, which seeks to, among other things, terminate the MSA, dissolve the Joint Venture, distribute the Joint Venture’s assets, and pay off the Joint Venture’s debts. Specifically, the Unwind Agreement provides that: 21C will cease paying management fees to the Joint Venture pursuant the MSA upon execution of the Unwind Agreement; HMSO will make a one-time payment to the Joint Venture of $150,000 (the ‘HMSO Payment’).”

Read more bankruptcy news.