Landauer files for Chapter 11 ahead of sale
WILMINGTON, Del. – Landauer Metropolitan, Inc., a Mount Vernon, N.Y.-based provider of home health equipment and supplies, filed for Chapter 11 bankruptcy protection on Aug. 16, citing an anticipated $26 million decline in revenue resulting from losses related to competitive bidding, according to news reports.
The filing comes ahead of a $22 million sale to Quadrant Management, Inc., barring a better offer at a September auction. Quadrant is a New York-based private equity firm that manages more than $3 billion. Its core business is lower middle market investing and hands-on company restructuring, according to its web site.
TD Bank is the agent for lenders owed more than $29.4 million. Investors are owed about $6 million on a second-lien obligation, and vendors are owned about $15 million, according to a court filing.
Landauer, whose majority shareholder is Clairvest, a Toronto-based private equity firm, saw revenue fall from $137.1 million in fiscal 2012 to $128.5 million in fiscal 2013.
The provider did not receive any contracts as part of Round 2 of competitive bidding. A planned merger with AllCare Services, which accepted 63 contracts, has fallen through.
Landauer is also the subject of a government investigation into billing practices, according to news reports.
The provider has 32 locations in eight states, and does most of its sales in New York and Pennsylvania.