Thursday, January 27, 2011

Bankruptcy Looms for Allcare Dental

I knew that a bankruptcy filing would be in Allcare Dental's future.
An attorney representing Allcare Dental & Denture said Wednesday a bankruptcy filing is imminent, though the company’s immediate focus is on connecting patients to other providers.

Paul Cambria, a partner in Lipsitz Green Scime Cambria LLP, said he is one of several attorneys working with the company since it shut down abruptly in late December after a financing plan fell through.

In the weeks since, Cambria says, about 60 percent of the patient load — more than one million patients in 13 states — have been transferred to other dental practices to complete work in progress, much of it pre-paid dental procedures and dentures. Allcare Dental’s owner, Dr. Robert Bates, has been working 15 hours a day to finalize those agreements, he says.

“We’ve been trying to transition patients and records,” Cambria says. “Unfortunately, it was a failed business. The lending crunch caught up with this business as it has with a number of others. They had a number of professionals working with them, trying to recapitalize the business, but ultimately their legal advisors with regard to financing and refinancing advised them to close down.”
Cambria's comments are the first made by the failed company since the company shut its doors at the end of last year. Previously, the company has communicated off and on through its website.

Thankfully, in the latest posting found here, there has been more of an effort to transition patients and records.

But, I don't think this will end the headache for the owner's, Dr. Robert Bates and David Pennington, who are being sued civilly and being investigated by a number of dental boards and state attorney generals.

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