Laboratory Partners Inc. (MedLab), a clinical laboratory doing business in eight states and the District of Columbia, filed for bankruptcy on Oct. 25 with six subsidiaries, according to a press release. MedLab affirmed it will continue to operate its business and serve its customers on an uninterrupted basis through its existing facilities and employees, in all of the markets in which it operates, as it moves forward with its restructuring plan. In conjunction with the filing, MedLab has obtained a $5 million credit facility and line of debtor-in-possession financing from Marathon Special Opportunity Fund, an affiliate of its current senior secured lenders. MedLab intends to seek immediate permission from the bankruptcy court to pursue the sale of two of its divisions to potential purchasers. The company anticipates that, subject to court approval, a court-supervised auction for the Long Term Care division should occur in December 2013. The auction for the Terre Haute area laboratory business should be scheduled in January 2014. The closing of each transaction will occur shortly after each auction.
