Former Liberty Medical gets 54-day extension of plan exclusive periods

By Jim Witters

Wilmington, Del., July 10 - ATLS Acquisition, LLC, formerly Liberty Medical Supply, Inc., received approval for a 54-day extension of its exclusive periods for filing a Chapter 11 plan of reorganization and for seeking plan votes, according to a July 10 filing with the U.S. Bankruptcy Court for the District of Delaware.

The exclusive period for filing a plan is extended through Aug. 8 from June 15. The exclusive period for soliciting plan acceptances is extended through Oct. 7 from Aug. 14.

In seeking the extensions, the company said it is only beginning to implement operations improvements necessary to achieve its business plan. The company said it also plans to implement new accounting and financial systems crucial to its ability to fully assess its revised business plan and to the feasibility of a reorganization plan.

ATLS said it will also try to resolve a dispute related to recoupment claims and will use the extended exclusive periods to investigate potential claims against Medco and to make progress in civil litigation.

The company expects a further extension will be needed to fully resolve these critical issues, but its official committee of unsecured creditors only agreed to the this extension.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15. The Chapter 11 case number is 13-10262.

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