Citing “severe financial distress,” American Hospice Management Holdings has filed for bankruptcy protection so it can sell its money-losing business in the next six weeks, CFO.com reported today. The provider of hospice care in seven states has been seeking a buyer since March 2013. In filing chapter 11 on Sunday, it said that an expedited sale through a bankruptcy proceeding “would best preserve the underlying value of its operations and maximize the value of [its] assets” for the benefit of creditors and shareholders. Hospice Partners of America has made a stalking-horse bid to acquire American Hospice’s operations in Virginia and Texas. Additional bidders will be sought for the operations in Arizona, Florida, Georgia, New Jersey, and Oklahoma, and the sale process must close by April 30, according to the company.
