The end is nigh for beleaguered imaging center firm U.S. Diagnostic. The Fort Lauderdale, FL, company today reported that it plans to sell its remaining imaging center operations to its senior lender, DVI Financial Services, and then liquidate its remaining assets.
USDL said that it would sell its 21 fixed-site imaging centers to DVI for about $14 million. DVI will waive or assume other USDL liabilities, such as $30 million in debt that USDL owes DVI and $7.5 million in secured debt that USDL owes other companies.
As part of the deal, USDL filed Chapter 11 papers in a U.S. bankruptcy court in Florida. The company plans to liquidate its remaining assets and pay off its unsecured creditors with proceeds from the DVI sale.
USDL believes that its imaging centers will continue to operate as usual pending the sale to DVI, and the company has filed motions with the bankruptcy court to support its employees, vendors, and customers. The company’s vendors and suppliers should continue to receive payments, USDL said.
DVI plans to assign its purchase rights to the USDL centers to an affiliate of PresGar Medical Imaging, USDL said.
USDL at one time had aspirations to consolidate the fragmented imaging center market, and in the mid-1990s embarked on an aggressive center acquisition plan. The company stumbled under the heavy debt load it took on, however, and was forced to begin closing and divesting centers. It announced that it would file Chapter 11 last month.
By Brian CaseyAuntMinnie.com staff writer
September 13, 2002
Related Reading
USDL posts Q2 loss, August 20, 2002
U.S. Diagnostic continues downward spiral in fiscal 2001, April 17, 2002
USDL fails to make payments, July 5, 2001
U.S. Diagnostic posts first-quarter loss, May 22, 2001
USDL suspends merger talks with IRG, March 2, 2001
USDL to merge with International Radiology Group, January 17, 2001
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