Liberty Medical Supply Files for Chapter 11 Bankruptcy
Liberty Medical Supply Inc., which offers home delivery of health care products, filed for Chapter 11 bankruptcy protection last Friday, according to documents filed in the U.S. Bankruptcy Court in Delaware cited by the Chicago Tribune.
The filing indicates the Port St. Lucie, Fla.-based company has between $100 million and $500 million in both assets and liabilities, and between 1,000 and 5,000 employees.
Liberty Medical listed CGS Administrators as its largest unsecured creditor with a disputed claim of $137.2 million. The second-largest unsecured creditor was Express Scripts Holding Co. unit Medco Health Solutions, with a $14.2 million disputed claim.
Nine of the company’s affiliated entities also filed for bankruptcy, including Polymedica Corp., National Diabetic Medical Supply LLC, Liberty Healthcare Pharmacy of Nevada LLC, and Liberty Healthcare Group Inc.
The company reportedly filed for bankruptcy protection facing pressure from its creditors from dealing with issues with tax authorities and CMS, but CEO Frank Harvey pointed to other major companies including American Airlines and General Motors who have gone through Chapter 11.
“It’s a business tool used by companies quite frequently when they’re facing issues that wouldn’t allow them to be successful in the long term if they didn’t address those,” Harvey told Salem, Va.-based WDBJ7.com. “(It) could be three to twelve months as we move through chapter 11, but we’re confident Liberty will come out on the other side stronger than ever.”
Written by Alyssa Gerace