HDL Inc. seeks court approval to sell the company
Health Diagnostics Laboratory Inc. (HDL) wants to put the company up for sale amid what is says is interest from “numerous” unnamed parties.
The Richmond-based blood testing laboratory filed a motion with the U.S. Bankruptcy Court for the Eastern District of Virginia Monday seeking the court’s authorization to conduct a sale of its business under Section 363 of the Bankruptcy Code.
HDL Inc. said in a statement that it intends to continue normal operations throughout the sale process, which is expected to maximize the value of the company and provide a platform for future growth.
“We are taking this step because we are convinced that a successful sale would be in the best interests of all HDL Inc. public and private stakeholders, including our secured and unsecured creditors, our employees, and the physicians and patients who rely on our advanced diagnostic testing,” HDL President and CEO Joseph McConnell said in a statement.
According to McConnell, “Numerous parties have expressed considerable interest in acquiring and operating HDL Inc.’s business, and many have already invested significant resources in evaluating the opportunity. “
The capital investment that would come from a successful sale would help ensure the company’s long-term viability, he added.
Under the proposed sale procedures, the company would give notice of the pending sale and solicit bids from potential bidders. HDL would supervise the bidding process, qualify and evaluate competing bids and would expect to seek approval from the Bankruptcy Court of the highest and best qualifying bid. According to the court filing, the deadline for receiving bids would be Sept. 4, with an official auction held on Sept. 10, and a sale hearing in court on Sept. 16.
HDL filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on June 7. The action came about two months after the company agreed to a $47 million settlement with the U. S. Department of Justice to settle allegations of violating anti-kickback laws by paying fees to doctors and healthcare providers who sent blood samples to its labs. Since then, it has been gearing up to sell excess equipment, lease out additional space at its downtown headquarters and find debtor-in-possession financing.
The company said the bankruptcy court is expected to consider approval of the sale procedures at a July 14 hearing. If those procedures are approved, it said a successful bidder is expected to be identified in early September with a closing anticipated later that month.