The clearinghouse business has become very competitive and the company was not able to maintain the stock pricing requested by NASDAQ. BD
Claims clearinghouse MedAvant Healthcare Solutions in Atlanta has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The vendor also has filed a motion to sell its assets to Marlin Equity, an El Segundo, Calif.-based private equity firm, subject to better bids at an auction sale expected in about two months. Further, MedAvant has obtained a debtor-in-possession financing commitment of $8.1 million by New York-based Laurus Master Fund Ltd. The commitment includes $2.9 million in new credit availability to support business operations during the bankruptcy case.