Quote:
Originally Posted by BrianL99
Generally, Bankruptcy sales are "asset sales", not the sale of a corporation. I'm far from an expert on Bankruptcy, but every business we've bought out of bankruptcy, were asset sales.
In this case, the anticipated "sale" came before the Bankruptcy, which may have influenced the Bankruptcy court, to continue down that road as a corporate sale ...which generally includes assets & liabilities.
It seems if the proposed sale were to transform into an asset sale, a lot of the issues go away. The liabilities don't attach to the sale and the proceeds are held by the Bankruptcy Judge, to be used as he determines.
As TV Health apparently has limited assets (essentially, only its patient base), it seems this would be a logical way to go.
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The bankruptcy judge is in a difficult predicament in this particular case. On one hand, she doesn’t want to tank the sale and potentially leave 55k seniors up the creek without health care. On the other hand, they have an obligation to seriously consider the well thought out objections filed by the likes of the U.S. Government, Florida Blue, United Health Care, and other creditors. To further complicate matters, this case could set an important precedent for other high profile Medicare over billing cases in the future. Hopefully, the court can find a way to strike a delicate balance between the interests of the various parties involved, without significant collateral damage to the many innocent parties that could be effected by the resolution of this case. Stay tuned.