Rotech bankruptcy

rotech bankruptcy

Rotech’s Filing for Bankruptcy. Rotech also asserts that its filing for bankruptcy does not, in itself, mean that it lacks adequate financial resources, and contends that it was unreasonable for the contracting officer to find that Rotech lacked adequate financial resources without considering the purpose for Rotech’s Introduction. Earlier today, Rotech Healthcare (“Rotech”), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.. According to a declaration filed by Rotech’s President and CEO (the “Declaration” or “Decl.”), Rotech describes itself as “one of the largest providers of home medical equipment and related products and 2 days ago · As this crisis accelerates, Rotech stands ready to assist patients with cost-effective, quality home respiratory and medical equipment. That’s the Rotech Advantage! Every day, thousands of dedicated Rotech employees bring our unique brand of care and quality service to neighborhoods and communities across the United States of

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Rotech said it wants the court to move quickly on the exit financing, which will cover the costs of implementing its proposed Chapter 11 plan and provide working capital for the reorganized company going forward, according to the motion.

Stay ahead of the curve In the legal profession, information is the key to success. McCarthy Jr. Mullins, Esq. David G. Fagan, Esq. Heather Weiner, Esq. Kang, Esq. Protest that the agency improperly found the protester nonresponsible because the contracting officer failed to consider recent relevant information in assessing whether the protester had inadequate financial resources to perform the contract is denied where the record shows that the agency reasonably considered the available information concerning the protester.

RFP at 1, 5. The RFP permitted offerors to submit proposals for any or all of the 8 geographic areas listed in the solicitation. RFP at 1; id. RFP at 1. Rotech submitted a timely proposal in response to the RFP by the April 30 closing date.

Contracting Officer CO Statement at 2. Protest, exh. Protest at The VA evaluated the proposals, and on September 18, the contracting officer found that Rotech was nonresponsible.

AR, Tab 5, Responsibility Determination at 1, 6. Specifically, the contracting officer explained its concerns about Rotech as follows:. First, Rotech does not yet have an approved reorganization plan and does not expect one until August Secondly, Rotech admits it is and has been pursuing the sale of the company. It cannot be known who would purchase the assets and whether or not a new company can or would want to keep and maintain the contract.

In addition, the contracting officer provided further detail about the decision in a written debriefing. Specifically, the debriefing letter to Rotech stated the following:. The average for US business is 5. This means the company has been placed in a Special Category of bankruptcy or high risk of business deterioration.

AR, Tab 2, Debrief Letter, at H]owever, the final piece of information that solidified the determination comes from a Rotech announcement[. Bankruptcy Court that. It is not possible to know if a successor would have capability, capacity or desire to assume the contract or be eligible to hold a Government contract.

Rotech argues that the VA unreasonably determined that it was nonresponsible because the contracting officer failed to consider recent relevant information in assessing whether Rotech had adequate financial resources to perform the contract, or the ability to obtain these resources. For the reasons discussed below, we conclude that the agency reasonably found Rotech nonresponsible, [5] and therefore find that Rotech is not an interested party with respect to its remaining protest grounds.

See Trailblazer Health Enters. Contracts may only be awarded to responsible prospective contractors. Follow Us:. Bankruptcy Code. The provider plans to file its consensual plan and petitions in the coming weeks. Once it has filed, it expects to complete the process within 90 to days. Since that time, dramatic reimbursement reductions have made it essential that we reduce our debt to a manageable level.

Rotech is also in negotiations with certain of its secured creditors to obtain debtor-in-possession DIP financing to ensure sufficient liquidity throughout what is expected to be a relatively short Chapter 11 process, according to the release.

Rotech has filed for bankruptcy before. It emerged from bankruptcy in as a separate company from its troubled parent, Integrated Health Services.

rotech bankruptcy

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