Tags: Scooter | bankrupt | Medicare | Medicaid

Scooter Store Files for Bankruptcy With Plan to Sell Assets

Monday, 15 Apr 2013 01:34 PM

Scooter Store Holdings Inc., a supplier of motorized scooters and wheelchairs throughout the U.S., filed for bankruptcy with a plan to sell virtually all of its assets.

“Historical overhangs coupled with an increasingly complex regulatory environment and mounting economic pressure in the health-care sector have significantly impacted the company’s ability to operate under its current model,” Chief Executive Officer Martin Landon said today in a statement.

The closely held company, based in New Braunfels, Texas, listed assets of less than $10 million and debt of more than $50 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.

Scooter Store will use Chapter 11 “to seek to create a new, financially healthy provider that operates in strict accordance with all legal, contractual and regulatory requirements,” Landon said.

The store owes the Centers for Medicare and Medicaid Services, administrators of two government programs, more than $19 million, according to court papers. Medicare provides health-care coverage for the elderly and disabled, funded through a payroll tax and other federal revenue. Medicaid provides coverage for the poor, administered by states and funded jointly by state and federal governments.

Morgan, Lewis & Bockius LLP and Young Conway Stargatt & Taylor LLP are serving as Scooter Store’s bankruptcy lawyers, the company said. Morgan Joseph TriArtisan was hired to help with the asset sales and Lawrence Young of AlixPartners LLP was named chief restructuring officer.

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Scooter Store Holdings Inc., a supplier of motorized scooters and wheelchairs throughout the U.S., filed for bankruptcy with a plan to sell virtually all of its assets.
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2013-34-15
Monday, 15 Apr 2013 01:34 PM
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