Millennium Health Lenders Said Sparring Over Bankruptcy Plan
- Some holders of lab tester's loans said to want higher payout
- Current equity owners would cede control, pay U.S. settlement
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Millennium Health LLC is struggling to wrangle enough support for a debt restructuring plan that would allow it to settle a federal billing probe by a deadline this week, according to two people with knowledge of the matter.
Some lenders that bought the biggest U.S. drug-testing lab’s $1.8 billion loan at or near face value are demanding a bigger payout from shareholders, which include private-equity firm TA Associates, said the people, who asked not to be named because the discussions are private. They want to extract more while other lenders who purchased the debt at deeply discounted levels are willing to accept less, the people said.