Alliance Medical Holdings LLC filed for bankruptcy protection after a criminal investigation into its operations spooked its lender, which threatened to cut off money for the company’s nearly 800 workers, the Wall Street Journal reported today. Lawyers who put the Utah firm into chapter 11 protection said yesterday that federal investigators raided its headquarters in suburban Salt Lake City and have already taken $1.2 million from a bank account. The company, which took in $160 million in revenue last year, uses an online resource center and a network of 20 pharmacies across the country to help people who have diabetes and other chronic health conditions. Alliance Medical officials don’t know the basis for the investigation but said that the company is operating in a lawful manner, its lawyer told Judge Marvin Isgur yesterday during a hearing in U.S. Bankruptcy Court in Houston. Alliance Medical officials have negotiated a deal with federal officials that enables the company to remain open during the investigation.
