ATLANTA, Aug. 7, 2008 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions (MedAvant) (Pink Sheets:PILLQ), a leader in healthcare technology and transaction services, today announced that the United States Bankruptcy Court Judge presiding over its chapter 11 case in Delaware yesterday approved the Company's proposed bid procedures and timetable for the auction sale of the Company on September 8, 2008. This is the second major court victory for the Company as it continues along its reorganization path while continuing normal operations. As previously reported, the Court on July 24 approved on an interim basis the Company's $2.9 million debtor-in-possession financing with its senior lender Laurus Master Fund, Ltd., to continue operations during chapter 11 in the ordinary course of business.
"Contrary to what some of our competitors are saying to our customers, we are not 'bankrupt' and we are not going out of business," said Peter Fleming, MedAvant's interim Chief Executive Officer. Mr. Fleming added, "The Court's ruling yesterday on our bid procedures and sale timetable supports our strategy for the health and continuation of the Company for the long term. We already have one purchaser committed to acquiring the Company and our employee base, and we think it likely that any other bidders participating in the auction would wish to do the same. This is good news for our employees, customers, partners, and vendors. We greatly appreciate their support and loyalty."
As previously announced, the Company already has a "stalking horse" purchaser in Marlin Equity, and if there are no other bidders at the September 8 auction, the Company will shortly thereafter be sold to Marlin. Under the schedule approved yesterday by the Court, any bids from competing bidders will have to be submitted first in writing on or before September 5, 2008. The auction itself will then be conducted in Wilmington, Delaware at the offices of the Company's Delaware bankruptcy counsel, Young, Conaway, Stargatt & Taylor, beginning at 9 a.m. on September 8, 2008. The Court also previously approved the Company's motions for the payment of wages, the continuation of benefit and rebate programs, and the payment of certain critical vendors to allow the Company to continue to provide uninterrupted service during the duration of the chapter 11 case. The Company filed for chapter 11 protection on July 23 in order to address its debt burdens through a sale and restructuring process.
The Company is represented in the bankruptcy case by Michael P. Richman of Foley & Lardner LLP and Michael Nestor of Young, Conaway, Stargatt & Taylor.
About MedAvant Healthcare Solutions
MedAvant is a national connectivity network that connects payers with providers in a real-time environment for the purpose of transparently messaging administrative, financial and clinical information in order to lower total administrative costs, improve payer, provider and member relationships, and to ultimately improve clinical outcomes.
For more information, visit http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.
Forward Looking Statement
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. Actual results could differ materially from projected results because of factors such as: the soundness of our business strategies relative to the perceived market opportunities; MedAvant's ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant's ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy; entry into markets with vigorous competition, market acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect the company's intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; the effects of a natural disaster or other catastrophic event beyond our control that results in the destruction or disruption of any of our critical business or information technology systems. Any of these factors could cause the actual results to differ materially from the guidance given at this time. For further cautions about the risks of investing in MedAvant, we refer you to the documents MedAvant files from time to time with the Securities and Exchange Commission, including, without limitation, its most recently filed Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims, any obligation to update information contained in this document. Although this release may remain available on our website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.