Bostwick Laboratories, Inc. and its parent holding company have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 17-10570-BLS). Bostwick, which is headquartered in Uniondale, New York, provides laboratory testing services to independent physicians nationwide, with a specific emphasis on urology services. Bostwick’s petition lists its estimated assets between $1 – $10 million and its estimated liabilities between $50 – $100 million; Bostwick’s petition also asserts, however, that funds will be available for distribution to unsecured creditors. According to the First Day Declaration, Bostwick’s filing was caused by deepening cuts, beginning in 2013, to Medicare reimbursement rates for many of the services it offers. Bostwick began marketing itself in August 2016 and now enters Chapter 11 with a pre-arranged DIP Lender and Stalking Horse Bidder, Poplar Healthcare, PLLC. Donlin Recano & Company, Inc. is the proposed claims agent. The cases have been assigned to the Honorable Brendan Linehan Shannon.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.