Healthcare services organization Constellation Healthcare Technologies, along with certain of its subsidiaries, filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of New York in order to facilitate an orderly and efficient sale of its businesses.
The company is in active discussions with several interested parties and working to finalize terms and expects to announce asset purchase agreements in the near term.
Constellation secured a commitment for $7.5 million in DIP financing from Bank of America to support its ongoing operations during the sale process. This additional financing, combined with normal, ongoing cashflows, is intended to help ensure the company is able to meet its go-forward commitments to employees, clients, and suppliers.
“After evaluating a range of possible alternatives, Constellation has determined that our various business divisions will be better positioned for long-term growth and success under new ownership with the financial strength necessary to invest in their offerings and opportunities,” said Interim Chief Executive Officer Timothy J. Dragelin. “Today’s Chapter 11 filings are a critical first step in achieving this outcome because they allow us to preserve the value of our businesses while we evaluate potential buyers.”
All Constellation businesses are expected to operate as usual throughout the sale process.
