Court filings show that independent service organization Avante Health Solutions and its affiliates, (under the banner of Jordan Health Products) petitioned for bankruptcy on October 8 under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

The move, according to a statement from Avante, will allow the company to move forward with a sale to private equity firm Staple Street Capital, which has approximately $900 million under management.

"Our team has been working diligently to strengthen our financial foundation in the face of difficult circumstances brought on by ongoing litigation, which has cost Avante approximately $20 million over the past several years," said Jim Leitl, CEO and president of Avante. "After evaluating our options, the Board and management team determined that entering into an agreement with Staple Street Capital, who will support Avante's long-term success, is the best path forward."
Avante Health Solutions provides medical, surgical, and imaging equipment, including sales, service, repair, parts, refurbishing, and installation. According to its website, the company's imaging division employs over 140 field service engineers.

Debtor’s affiliates involved in the bankruptcy case include D.R.E. Medical Group Inc., Equipment Maintenance Solutions Inc., Global Medical Imaging LLC, Jordan Health Products III Inc., Oncology Services International Inc., Pacific Medical Group Inc., Pacific Medical Holdings Inc., Technical Options of Georgia Inc., Transtate Equipment Company Inc., Ultra Solutions Holdings Inc., and Ultra Solutions LLC.

Avante and affiliates listed assets of between $50 million and $100 million and liabilities of between $100 million and $500 million. The petition lists 30 of the largest unsecured creditors, starting with Philips Medical Systems, and the filing comes amid increasing right-to-repair disputes between equipment manufacturers and independent servicers.

The U.S. Department of Justice is currently forming a committee from some of the largest unsecured creditors to represent the interests and act on behalf of all unsecured creditors. Members of such committees are generally selected from the twenty largest unsecured creditors.

The agreement with Staple Street Capital remains subject to Court approval and other customary conditions, with an expected completion date by year end. Avante intends to move through this process while operating in the ordinary course — providing the industry-critical services that its customers, patients, and partners rely on. In connection with the proposed sale transaction, Avante has received a commitment for debtor-in-possession ("DIP") financing from Staple Street Capital to support the business through the sale process.

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