MedQuist, Mt. Laurel, N.J., a provider of technology-enhanced medical transcription services, has agreed to buy the domestic assets of rival transcription service provider Spheris, Franklin, Tenn., under supervision of a federal bankruptcy court in what MedQuist calls a “stalking horse” purchase agreement.
Spheris, meanwhile, has announced an agreement with a syndicate of lenders to provide the company with up to $15 million in debtor-in-possession financing to continue company operations, pending approval of the court, a Spheris statement said.
The statement said the syndicate will enter into what Spheris describes as a “senior secured super-priority debtor-in-possession financing agreement” with debtors in the bankruptcy case, with Ableco, as collateral agent, and Cratos Capital Management, as administrative agent, the company statement said.
CBay, with headquarters in Annapolis, Md., and Mumbai, India, a wholly owned subsidiary of CBaySystems Holdings, Road Town, British Virgin Islands, and the principal investor in MedQuist, also has agreed to purchase the stock of Spheris India Private Ltd., a subsidiary of Spheris that is not part of the U.S. bankruptcy proceedings, according to the company statements.