The other shoe has finally dropped for Spheris. The Franklin-based medical transcription company today announced plans to be acquired by competitors MedQuist and CBay, portfolio companies of CBaySystems Holdings.
In order to commence the transaction, in which MedQuist will buy Spheris’ domestic assets and CBay its India operations, Spheris has filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware. Prior to court approval of the agreement, there will be a court-supervised competitive bidding process to solicit other qualified bidders. If bidders emerge, an auction would be held prior to a hearing approving the sale. Spheris India did not file for bankruptcy.
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