MedQuist Awarded Court Approval as Stalking Horse Bidder for Domestic Assets of Spheris
MT. LAUREL, N.J., Feb. 25 /PRNewswire-FirstCall/ -- MedQuist Inc., a leading provider of technology-enabled clinical documentation services, today announced that the United States Bankruptcy Court for the District of Delaware has issued an order approving bidding procedures naming MedQuist, along with CBay Inc., MedQuist's majority owner, the stalking horse bidders in the Chapter 11 bankruptcy case of Spheris Inc. Spheris filed for Chapter 11 bankruptcy protection on February 3, 2010, after entering into a purchase agreement with MedQuist and CBay to purchase substantially all of Spheris' assets in a sale under Section 363 of the United States Bankruptcy Code. The court order was entered in accordance with the timeline provided for by the purchase agreement, and among other things, provides for an auction of Spheris' assets on April 13, 2010, and the payment of certain transaction expenses and payment of a breakup fee in the amount of $2.1 million by Spheris to MedQuist and CBay in certain circumstances if they are not the winning bidders at the auction. Pending a successful conclusion of this process, MedQuist anticipates this transaction will close by mid-to-late April.
"I am very pleased by today's positive court ruling, as it continues the process forward for MedQuist. We believe the combination of these organizations will result in an even stronger team of talented and skilled professionals to serve Spheris customers and the healthcare market," stated MedQuist CEO Peter Masanotti. He continued, "Our goal is to provide an extensive portfolio of products, technologies and solutions, and a seamless transition that maintains a high level of quality service for all customers. In fact, it is our intent that account representatives, medical transcriptionists, and other service and QA professionals will remain as currently assigned to the Spheris customers. We stand by our commitment to excellence in customer satisfaction and service levels 24 hours a day, every day, and we recognize the critical value of our work as it supports our customers' efforts to provide high quality patient care nationally and internationally."
MedQuist (Nasdaq: MEDQ) is a leading provider of medical transcription services, and a leader in technology-enabled clinical documentation workflow. MedQuist's enterprise solutions -- including mobile voice capture devices, speech recognition, Web-based workflow platforms, and global network of medical editors -- help healthcare facilities improve patient care, increase physician satisfaction, and lower operational costs. For more information, please visit www.medquist.com.
Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements include, without limitation, statements regarding the terms of the pending transaction and any other statements that are not historical facts. These risks and uncertainties include the timing, receipt of approvals and satisfaction of conditions for the proposed transaction, as well as the risk that another bidder may purchase substantially all of Spheris' assets. Other risks and uncertainties, which are more fully described in documents filed by MedQuist with the Securities and Exchange Commission, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, could cause actual results to differ from those contained in the forward-looking statements.
SOURCE MedQuist Inc.