Liberty Medical Files for Chapter 11 BankruptcyPhil Milford and Sophia Pearson
Liberty Medical Supply Inc. and affiliates that provide products and services for people with diabetes and other ailments filed for Chapter 11 bankruptcy court protection amid pressure from creditors.
The Port St. Lucie, Florida-based company listed assets and debts of as much as $500 million each in papers filed today in Wilmington, Delaware.
“Several unexpected events” including disputes with tax authorities and the Center for Medicare and Medicaid Services, led to the filing, said Frank A. Harvey, Liberty chief executive officer, in an e-mailed statement.
Bankruptcy petitions were also filed by Polymedica Corp., National Diabetic Medical Supply LLC, Liberty Healthcare Group Inc. and Liberty Healthcare Pharmacy of Nevada LLC.
Among the largest unsecured creditors listed in court papers were CGS Administrators of Nashville, Tennessee, owed $137 million, and Abbott Laboratories of Abbott Park, Illinois, owed more than $5 million.
“Liberty continues to focus on our critical mission to positively impact the lives of our patients” by helping to manage their health, Harvey said.
The case is In re Liberty Medical Supply Inc., 13-10268, U.S. Bankruptcy Court, District of Delaware (Wilmington).