MedQuist, Mount 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.
To begin the sale process, Spheris and certain of its affiliates filed voluntary petitions for protection from creditors under Chapter 11 of the federal bankruptcy code, the company stated.
In addition to the bankruptcy court, other interested parties may have a say in the sale, according to a Spheris news release. It said: “Prior to the court approval of the MedQuist/CBay agreement, there will be a court-supervised auction process to facilitate competitive bidding by other qualified bidders. The auction process is intended to achieve the highest price possible for the assets and provide the company with an efficient way to address its capital structure without disrupting operations.