MacKeyser Holdings LLC and Certain Affiliates of American Optical Services File Ch. 11

By

Thomas J. Allison.
LAS VEGAS – Voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code were filed late June 20 by MacKeyser Holdings, LLC and certain of its subsidiaries, many of which were associated with the business known as American Optical Services and Excela Hearing Services.

A statement from the company said the filings will facilitate “the wind down and ultimate liquidation of the company….and will allow the company to wind down its businesses in an orderly and expeditious fashion for the benefit of its stakeholders.”

The MacKeyser company statement said that certain locations of the company would be transitioned to practice physicians, profitable operations and assets would be sold and unprofitable locations would be closed under the petition, which was filed in the United States Bankruptcy Court for the District of Delaware in Wilmington. “Continuity of care remains the top priority at all practices,” the company said, noting that the closure of its unprofitable locations has already begun.

“The liquidity crisis that precipitated the filing was the culmination of various factors including a non-strategic acquisition strategy, unsustainable costs of practice integration, electronic medical records implementation, and general mismanagement,” the statement said.

In addition, “upon the discovery of significant accounting irregularities, the board of managers launched an investigation, which led to the termination” of the company’s former CEO, Pierre Keyser, and former COO, Erica Perreira. The investigation is still ongoing, documents said. On June 6, Thomas J. Allison was appointed to the board of managers and as CEO, as VMail previously reported.

Allison said, “while the decision to file Chapter 11 was a difficult one, it became clear after reviewing various options that it was in the best long-term interest of the company’s stakeholders.”

“By availing ourselves of the Chapter 11 process,” Allison noted, “we believe we can maximize the value of the business and its assets for the benefit of all creditors. We are working with our doctors and other partners to transition through this period efficiently, with minimal interruption to patient care.”

As part of the plan, the company is in the process of transitioning some of its optical and hearing practices through a “keepwell” program. The “keepwell” program will maintain continuity of patient care with the support of physician partners pending the ultimate sale of the practices. At all facilities, medical records, patient care, and payment processes will be handled according to applicable regulations and state requirements.

Allison said, “We are committed to minimizing disruption to patient care during this transaction period with the support of our physician partners and employees.”

MacKeyser Holdings, LLC, along with the 22 other debtors, filed voluntary petitions seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code. These cases, with a request to be consolidated, are pending before the Hon. Judge Christopher S. Sontchi in the U.S. Bankruptcy Court for the District of Delaware. The debtor continues to operate its business and manage its properties as a debtor-in-possession.

MacKeyser Holdings, LLC and its operating affiliates American Optical Services, LLC, and Exela Hearing Services, LLC manage integrated eyecare and hearing systems providers with over 80 optical retail, optometry and ophthalmology locations in 14 states. Within certain of the company’s locations, dedicated audiology and dispensing staff conduct diagnostics, fitting and dispensing of hearing systems.