- Associated Press - Monday, June 8, 2015

RICHMOND, Va. (AP) - The once fast-growing blood-testing company Health Diagnostic Laboratory Inc. filed for Chapter 11 bankruptcy late Sunday night, listing between $100 million and $500 million in assets and liabilities.

A hearing in U.S. Bankruptcy Court is slated for Monday to consider motions to allow for a smooth transition into bankruptcy proceedings, including payment for payroll, the Richmond Times-Dispatch reports (http://bit.ly/1cGmJLA).

The Richmond-based company, faced with liquidity issues and unable to raise additional capital, owes $49.5 million to the U.S. Department of Justice from a settlement that ended a lengthy investigation into the company’s reimbursement practices when doctors order blood tests.

Other creditors include the company’s founder and former CEO Tonya Mallory, who is owed $2.4 million.

The company also owes several million in legal fees to law firms, including LeClairRyan. It owes the city of Richmond about $450,000 in taxes and the Washington Redskins $250,000. In 2013, the company was named the team’s official health and wellness partner.

Court documents show that the company received the notice of default from BB&T; on May 28, which no longer allowed the company to borrow under its loan facility. BB&T; also refused to honor previously sent checks and refused to allow the company access to the funds in any of its accounts with the bank.

“In light of BB&T;’s actions, the company projected that it would be unable to pay its suppliers, its employees or continue its business operations for any significant period of time,” court documents said.

Since starting operations in 2009 as a small blood-testing services company, Health Diagnostic Laboratory Inc. grew quickly, adding hundreds of jobs at its office and laboratory in downtown Richmond.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide