Millennium Health LLC is closing in on a deal with lenders to restructure the company in bankruptcy court, Bloomberg Business reported yesterday. The largest U.S. drug-testing lab is finalizing the plan as it makes arrangements by next week to pay a $275 million settlement of a federal probe. San Diego-based Millennium has offered the creditors control of the company. In exchange, the lenders wouldn’t pursue potential legal claims against owners including founder James Slattery and private-equity firm TA Associates that the probe wasn’t disclosed to investors while the company was marketing the $1.8 billion loan last year. The current equity holders would provide funds to Millennium so it can pay the settlement reached this week with the U.S. Department of Justice over allegations of overbilling a federal health-care program and other matters, said the people. A group of owners, including Slattery, would provide most of the funds, while TA Associates would pay a minority share.
