WARN notice

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According to what I've researched on WARN, they fall under the 'Faltering Company" exception. However, if you are a California employee, you may be entitled to 60 days of pay. Apparently, California has a different set of rules to the Faltering Company Exception. Other states may also have exceptions but California is definitely one of them.
 






Attachment to WARN Notification

Beginning in the middle of 2014, the medical laboratory industry began to experience a series of regulatory changes that affected the Company’s business model, causing both revenues and profitability to fall precipitously. By late 2014, the Company was no longer generating positive cash flow. In addition, starting in Q4 of 2014 the Company began a series of defaults under its credit agreement. As a result of this default and the subsequent credit agreement amendment negotiation, the Company sought and received additional capital from its primary owner, Behrman Capital. During 2015, the Company’s liquidity and financial performance continued to deteriorate, thus causing additional credit agreement defaults in subsequent quarters and requiring the Company to seek additional capital from Behrman. In late 2015, after Behrman had made a series of equity investments in the Company, Behrman determined that it was unable to continue providing funding without a significant restructuring of the Company’s debt obligations. The Company was aware that for Behrman and the lenders to agree on the timing, priority and amount of new capital, the Company’s business had to be stabilized and its balance sheet had to be restructured. As a result of these defaults, the Company hired a restructuring advisor in October 2015 and engaged with its lenders, Madison Capital Funding and Regions Bank, to seek a long-term debt and/or equity financing and restructuring solution. In December 2015, Madison agreed to provide new revolving credit loans to the Company under the terms of a forbearance agreement while longer term options were explored, including, at the insistence of the lenders, a potential sale of the Company. In and following December 2015, the Company delayed giving notice to employees, because it believed that doing so would have likely eroded the confidence of doctors, patients and employees and in turn would have precluded the Company from raising additional debt and/or equity financing. Financing discussions with Behrman and the lenders continued (and term sheets were exchanged) until February 23, 2016, at which point Madison notified the Company that it was in default of the forbearance agreement and that Madison was no longer willing to support the Company (which included draws on the balance of the existing revolver) without the cooperation of Regions Bank, which had steadfastly refused to provide any financial support. Because the Company was nearly out of cash, and its prospects for obtaining new capital were unexpectedly withdrawn by Madison, the Company had no options other than to give notice of termination to its employees, make its final payroll, and cease operations.
 






The regulatory changes that began to affect the company's business model in 2014 were written into law in 2011!!!

2011!

The entire ACA was published for review in 2011, with a year by year phase in schedule.

Why didn't the people running this company look ahead to reimbursement changes 4 years ago and plan ahead??

Why did they keep their archaic, outdated and ultimately fatalistic business model going like nothing was going to change reimbursement, when all one would have to do is read up on and interpret the changes coming to the marketplace?

Instead, they pretended nothing was happening. Anyone who didn't buy into the company line was castigated and vilified by the toxic management team here, like the jackass down in Texas or the "VP of marketing".

Now we're all screwed! How does that taste? My family is in turmoil now because of these morons.
 






anonymous said:
The regulatory changes that began to affect the company's business model in 2014 were written into law in 2011!!!

2011!

The entire ACA was published for review in 2011, with a year by year phase in schedule.

Why didn't the people running this company look ahead to reimbursement changes 4 years ago and plan ahead??

Why did they keep their archaic, outdated and ultimately fatalistic business model going like nothing was going to change reimbursement, when all one would have to do is read up on and interpret the changes coming to the marketplace?

Instead, they pretended nothing was happening. Anyone who didn't buy into the company line was castigated and vilified by the toxic management team here, like the jackass down in Texas or the "VP of marketing".

Now we're all screwed! How does that taste? My family is in turmoil now because of these morons.
Click to expand...

Didn't you read Jim's statement? This was region's fault for not throwing another log on the fire, not 20 years of atherotech mismanagement for building the raging bonfire in the first place.
 






anonymous said:
The regulatory changes that began to affect the company's business model in 2014 were written into law in 2011!!!

2011!

The entire ACA was published for review in 2011, with a year by year phase in schedule.

Why didn't the people running this company look ahead to reimbursement changes 4 years ago and plan ahead??

Why did they keep their archaic, outdated and ultimately fatalistic business model going like nothing was going to change reimbursement, when all one would have to do is read up on and interpret the changes coming to the marketplace?

Instead, they pretended nothing was happening. Anyone who didn't buy into the company line was castigated and vilified by the toxic management team here, like the jackass down in Texas or the "VP of marketing".

Now we're all screwed! How does that taste? My family is in turmoil now because of these morons.
Click to expand...

by Texas if you mean Joe then I agree. I always thought he had no business being a manager. not hiring the right people and letting the wrong people remain. let's see how jamie and joe fair in all this.
 






anonymous said:
Attachment to WARN Notification

Beginning in the middle of 2014, the medical laboratory industry began to experience a series of regulatory changes that affected the Company’s business model, causing both revenues and profitability to fall precipitously. By late 2014, the Company was no longer generating positive cash flow. In addition, starting in Q4 of 2014 the Company began a series of defaults under its credit agreement. As a result of this default and the subsequent credit agreement amendment negotiation, the Company sought and received additional capital from its primary owner, Behrman Capital. During 2015, the Company’s liquidity and financial performance continued to deteriorate, thus causing additional credit agreement defaults in subsequent quarters and requiring the Company to seek additional capital from Behrman. In late 2015, after Behrman had made a series of equity investments in the Company, Behrman determined that it was unable to continue providing funding without a significant restructuring of the Company’s debt obligations. The Company was aware that for Behrman and the lenders to agree on the timing, priority and amount of new capital, the Company’s business had to be stabilized and its balance sheet had to be restructured. As a result of these defaults, the Company hired a restructuring advisor in October 2015 and engaged with its lenders, Madison Capital Funding and Regions Bank, to seek a long-term debt and/or equity financing and restructuring solution. In December 2015, Madison agreed to provide new revolving credit loans to the Company under the terms of a forbearance agreement while longer term options were explored, including, at the insistence of the lenders, a potential sale of the Company. In and following December 2015, the Company delayed giving notice to employees, because it believed that doing so would have likely eroded the confidence of doctors, patients and employees and in turn would have precluded the Company from raising additional debt and/or equity financing. Financing discussions with Behrman and the lenders continued (and term sheets were exchanged) until February 23, 2016, at which point Madison notified the Company that it was in default of the forbearance agreement and that Madison was no longer willing to support the Company (which included draws on the balance of the existing revolver) without the cooperation of Regions Bank, which had steadfastly refused to provide any financial support. Because the Company was nearly out of cash, and its prospects for obtaining new capital were unexpectedly withdrawn by Madison, the Company had no options other than to give notice of termination to its employees, make its final payroll, and cease operations.
Click to expand...
 












anonymous said:
The regulatory changes that began to affect the company's business model in 2014 were written into law in 2011!!!

2011!

The entire ACA was published for review in 2011, with a year by year phase in schedule.

Why didn't the people running this company look ahead to reimbursement changes 4 years ago and plan ahead??

Why did they keep their archaic, outdated and ultimately fatalistic business model going like nothing was going to change reimbursement, when all one would have to do is read up on and interpret the changes coming to the marketplace?

Instead, they pretended nothing was happening. Anyone who didn't buy into the company line was castigated and vilified by the toxic management team here, like the jackass down in Texas or the "VP of marketing".

Now we're all screwed! How does that taste? My family is in turmoil now because of these morons.
Click to expand...
. Dude. This was written by Sr Mgmt to avoid being sued. I'm sure it's not 100% accurate. While the law may have passed 2011, it doesn't impact diagnostic labs until this year when they have to report overall average reimbursement per CPT code. ACA is not the cause here. It sux. But don't forget the company had 60m of revenue coming in the door and is suddenly bankrupt, yet this was prepared in December...hmmmm. The investor made a lot of money in 2013, and they didn't want to reinvest in this teams plan. Simple. Sorry. It sux.
 






anonymous said:
. Dude. This was written by Sr Mgmt to avoid being sued. I'm sure it's not 100% accurate. While the law may have passed 2011, it doesn't impact diagnostic labs until this year when they have to report overall average reimbursement per CPT code. ACA is not the cause here. It sux. But don't forget the company had 60m of revenue coming in the door and is suddenly bankrupt, yet this was prepared in December...hmmmm. The investor made a lot of money in 2013, and they didn't want to reinvest in this teams plan. Simple. Sorry. It sux.
Click to expand...

Sucks to be them because some states, California being the example below, may require this:

Unlike federal law, California WARN requires organizations to satisfy some procedural and evidentiary steps to advance the faltering company exception. Specifically, the employer must provide 1) a written record consisting of all documents relevant to the determination and 2) an affidavit, signed under penalty of perjury, stating that the affidavit and the contents of the submitted documents are true and correct.

If this wasn't done prior, the employees in that state must receive 60 days of back pay.
 


















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