MedAvant Bankrupt, Will Sell

July 24, 2008

Claims clearinghouse MedAvant Healthcare Solutions in Atlanta has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The vendor also has filed a motion to sell its assets to Marlin Equity, an El Segundo, Calif.-based private equity firm, subject to better bids at an auction sale expected in about two months. Further, MedAvant has obtained a debtor-in-possession financing commitment of $8.1 million by New York-based Laurus Master Fund Ltd. The commitment includes $2.9 million in new credit availability to support business operations during the bankruptcy case.

MedAvant in the past year has divested non-core business lines, including a preferred provider organization and a laboratory results reporting service, to focus on its clearinghouse services. Its objective now is to bring in a partner to invest capital toward growth of the company, says Peter Fleming, interim CEO.

MedAvant previously known as ProxyMed, also has received a notice from the NASDAQ Stock Market that its stock price does not comply with a required minimum bid price of $1.00 per share. The company has until Jan. 12, 2009, to have its stock close at $1.00 or more for 10 consecutive trading days, or face delisting from the exchange. More information is available at medavanthealth.com.

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