Constellation Healthcare sale procedures OK’d; auction set for June 25

By Caroline Salls

Pittsburgh, June 6 – Constellation Healthcare Technologies, Inc. received court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed June 5 with the U.S. Bankruptcy Court for the Eastern District of New York.

Medical Transcription Billing, Corp. is the stalking horse bidder with a $10 million bid.

Competing bids are due by 4 p.m. ET on June 19 and must exceed the stalking horse bid by at least $250,000, plus $600,000 in bid protections to be paid to Medical Transcription Billing if it is not ultimately the high bidder.

An auction will be held on June 25, if necessary. Bids at auction must be made in minimum increments of $250,000.

The sale hearing is scheduled for June 28.

Houston-based Constellation is a health care services organization providing outsourced revenue cycle management, practice management and group purchasing services to U.S. physicians. The company filed for bankruptcy on March 16 under Chapter 11 case number 18-71748.

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