Millennium Health LLC is struggling to wrangle enough support for a debt restructuring plan that would allow it to settle a federal billing probe by a deadline this week, Bloomberg News reported yesterday. Some lenders that bought the biggest U.S. drug-testing lab’s $1.8 billion loan at or near face value are demanding a bigger payout from shareholders, which include private-equity firm TA Associates. They want to extract more while other lenders who purchased the debt at deeply discounted levels are willing to accept less. Millennium is negotiating the terms for a bankruptcy filing at the same time that it’s finalizing a $275 million settlement of a federal investigation into its billing practices. The U.S. Department of Justice has said that it must have a plan to pay the sum by the end of this week. Read more.
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