Citing fictitious subsidiaries and potential fraud, health services company Constellation Healthcare Technologies Inc. and its subsidiaries filed for bankruptcy on March 16 in Central Islip, New York, owing nearly $4 million to four law firms, the American Lawyer reported. DLA Piper and Thomas Califano, U.S. co-chair of the global legal giant’s restructuring practice, are advising the debtor in its chapter 11 case. The collapse of the medical billing company comes a little more than a year after it was taken private following a $309.4 million sale to its founder Parmjit “Paul” Parmar and CC Capital Management LLC, a private investment firm started in 2015 by Chinh Chu, a former top dealmaker at buyout giant The Blackstone Group LP. Constellation, which on its website lists a headquarters in Houston but in bankruptcy court filings states it is based in Middletown, New Jersey, also does business as Orion Healthcorp Inc. The debtor lists assets of between $1 million and $10 million, according to bankruptcy court records, which show Constellation’s liabilities at between $100 million to $500 million.
