Health Diagnostic looks to have separate sale for subsidiary assets

By Kali Hays

New York, July 17 – Health Diagnostic Laboratory, Inc. is seeking approval of bid procedures related to the sale of substantially all assets of its subsidiary Central Medical Laboratories, LLC, according to a Thursday motion with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Since filing for bankruptcy, Health Diagnostic said it has been contacted by “several potential purchasers” interested in the CML assets “separate and apart from the debtors’ other assets.”

Given the level of interest, the company is looking to sell the CML assets on a more expedited basis than the timeline proposed in Health Diagnostic’s procedures for a separate asset sale.

As previously reported, the company received court-approval of strategic transaction bid procedures related to the possible sale of substantially all company assets or sponsorship of a plan of reorganization on July 15.

The company does not intend to select a stalking horse bidder for the CML assets, and preliminary indications of interest are due by 5 p.m. ET on Aug. 6.

Bids are due by 5 p.m. ET on Aug. 11 and an auction will take place on Aug. 13.

A sale hearing will take place by Aug. 17.

Health Diagnostic, a Richmond, Va.-based blood testing company, filed for bankruptcy on June 7. The Chapter 11 case number is 15-32919.

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