Constellational Healthcare cash collateral use extended to Sept. 10

By Caroline Salls

Pittsburgh, Aug. 16 – Constellation Healthcare Technologies, Inc.’s access to cash collateral has been extended through 5 p.m. ET on Sept. 10, according to a stipulation filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of New York.

The company’s case collateral use will expire sooner if it fails to comply with a term of the extension order, the bankruptcy case is dismissed or converted, a Chapter 11 trustee is appointed or a plan of reorganization or liquidation is filed that is not acceptable to Constellational Healthcare’s debtor-in-possession lenders.

Constellation Healthcare said its DIP facility was repaid in full on July 1 using the proceeds of a sale of substantially all of its assets.

As a result, the company said it does not have any available sources of working capital and financing to administer its Chapter 11 cases without the use of cash collateral.

Houston-based Constellation is a health care services organization providing outsourced revenue cycle management, practice management and group purchasing services to U.S. physicians. The company filed for bankruptcy on March 16 under Chapter 11 case number 18-71748.

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