On November 10, 2015, Millennium Lab Holdings and 2 affiliates filed for relief under chapter 11 of the Bankruptcy Code. The cases are jointly administered under Case Number 15-12284 and presided over by Judge Silverstein. The first day hearing was held on November 12, 2015. The second day hearing is scheduled for December 10, 2015 at 11:00 a.m.
The majority of the information available about the Debtors comes from the Declaration of William Brock Hardaway in Support of the Debtors’ Chapter 11 Petitions and First Day Pleadings (D.I. 3) (the “Declaration”). The other two debtors in these cases are Millennium Health, LLC and RxAnte, LLC. The Debtors filed these chapter 11 cases as a prepack, intending to quickly shed a substantial amount of debt and continue their operations.
The Debtors in this case provided testing services, and the majority of their revenues were generated through Medicare reimbursements. Declaration at *9. This became an issue, however, when the Department of Justice began investigating Millennium. In February, 2015, a Medicare Administrative Contractor informed Millennium that its Medicare billing privileges would be revoked on account of alleged administrative billing abuses relating to claims allegedly submitted by Millennium for services provided, after their dates of death, to 59 Medicare beneficiaries. Declaration at *9.
In May, 2015, the Debtors were able to reach a settlement with the Federal and State governments, and began negotiations with their lenders to keep the business alive. Declaration at *11-12. The Debtors successfully negotiated with a majority of their creditors to achieve a consensus as to the restructuring. They had hoped to reach an agreement with 97% of their creditors to effect an out-of-court restructuring, but having fallen short of that extremely high hurdle, filed for bankruptcy to complete their rehabilitation. Declaration at *16-17.
This case is going to move fast, so if you have a claim or other grievance, you will need to move quickly. If you want to stay up-to-date on the filings in this case, I’d recommend you keep an eye on the website created by the claims and noticing agent, Prime Clerk. The website contains a complete copy of the bankruptcy docket, free to download and view. The website is located at https://cases.primeclerk.com/millenniuminfo/.