YVSM successfully confirmed the Chapter 11 plan of liquidation for Advanced Patient Advocacy, LLC (“APA”) on November 26, 2019, before the Honorable Robert A. Gordon, U.S. Bankruptcy Judge for the District of Maryland.
As a healthcare revenue cycle management company, APA provided advocacy services benefitting medically vulnerable patients for 19 years. During the Chapter 11 proceeding, APA and its professionals conducted an organized process to determine the company’s ability to sell substantially all its assets, find private placement financing alternatives or restructure the existing credit facilities.
As a result, APA negotiated an asset purchase agreement with Kemberton Healthcare Services, LLC to sell substantially all its assets for a purchase price of $5 million. The sale was approved by the bankruptcy court and the closing occurred in October 2019.
The plan provides for a meaningful distribution to creditors from the proceeds of the sale and to liquidate any remaining assets. The plan was supported by all creditors that voted and confirmed by the bankruptcy court.