HDL’s headquarters on Fifth Street downtown. Photo by Burl Rolett.
Health Diagnostic Laboratory may soon be under new ownership.
The embattled downtown blood test company filed a motion in bankruptcy court Monday seeking authorization to conduct a sale of its business and assets that, if approved, should be finalized by the end of September.
The motion is set to go before a federal judge on July 14. HDL plans to solicit bids from interested buyers and then supervise the bidding process, while continuing normal operations in the meantime. A federal judge would then approve the highest and best bid.
“We are taking this step because we are convinced that a successful sale would be in the best interests of all HDL, Inc.,” President and CEO Joseph McConnell said in the news release. “Numerous parties have expressed considerable interest in acquiring and operating HDL, Inc.’s business, and many have already invested significant resources in evaluating the opportunity.”
The company filed for Chapter 11 bankruptcy on June 7 after its largest lender, BB&T, cut if off from its line of credit. The company has been unable to secure debtor-in-possession financing since its filing.
The sale will be conducted under Section 363 of the Bankruptcy Code, which allows the buyer to take on the company’s assets without the liabilities. The winning bid for a sale would likely be identified in early September, the company said.
The release does not identify any potential buyers or what could happen to HDL’s remaining Richmond operations or employees if a sale is consummated.
Stay tuned to BizSense for more on this story.
HDL’s headquarters on Fifth Street downtown. Photo by Burl Rolett.
Health Diagnostic Laboratory may soon be under new ownership.
The embattled downtown blood test company filed a motion in bankruptcy court Monday seeking authorization to conduct a sale of its business and assets that, if approved, should be finalized by the end of September.
The motion is set to go before a federal judge on July 14. HDL plans to solicit bids from interested buyers and then supervise the bidding process, while continuing normal operations in the meantime. A federal judge would then approve the highest and best bid.
“We are taking this step because we are convinced that a successful sale would be in the best interests of all HDL, Inc.,” President and CEO Joseph McConnell said in the news release. “Numerous parties have expressed considerable interest in acquiring and operating HDL, Inc.’s business, and many have already invested significant resources in evaluating the opportunity.”
The company filed for Chapter 11 bankruptcy on June 7 after its largest lender, BB&T, cut if off from its line of credit. The company has been unable to secure debtor-in-possession financing since its filing.
The sale will be conducted under Section 363 of the Bankruptcy Code, which allows the buyer to take on the company’s assets without the liabilities. The winning bid for a sale would likely be identified in early September, the company said.
The release does not identify any potential buyers or what could happen to HDL’s remaining Richmond operations or employees if a sale is consummated.
Stay tuned to BizSense for more on this story.