Doctors medical care provider seeks bankruptcy protection

Medical care provider Physicians Medical Care Providers, a unit of a medical care company, filed for bankruptcy protection Monday.

According to a filing in the U.S. Bankruptcy Court in Houston, the medical care providers filed for Chapter 11 protection.

“Our primary objective was to pursue a successful and sustainable business model to enable us to continue operating our business in a timely manner while maintaining the financial strength and capacity necessary to support our continuing operations,” said Physicians Medical Services.

The filing said the business plan and the business model were subject to numerous risks and uncertainties, including but not limited to the possibility of an extended period of uncertainty with respect to a favorable regulatory environment and to the ability of the Company to obtain sufficient financing, as well as the uncertainty related to changes in the value of the Medical Care Provider (MCP) Common Stock and the ability to attract qualified new members.

Pursuant to the terms of the agreement, the Company agrees to pay Physicians Medical Service a one-time cash payment equal to the amount of the payment which Physicians Medical services would have received in the event that the MCP Common Stock were trading at a price of $4.50 per share.

The filing also said that Physicians Medical will provide for a transition period of one year from the date of the filing of the petition for Chapter 9 bankruptcy, with the provision of up to $100 million in non-cash severance benefits.

The company also agreed to pay $15 million to Physicians Medical to cover certain liabilities of Physicians Medical.

The medical care service provider filed for protection under Chapter 11 of the U,S.

bankruptcy code in September 2017.

In September 2017, the company filed for reorganization and was given the opportunity to petition for bankruptcy and reorganization.

Last week, the court ruled that the company did not have to provide severance and other severance package in a settlement of the bankruptcy case.

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