A federal bankruptcy court in Columbus, Ohio, has approved a plan for failed telemedicine vendor HealthSpot to sell off its assets. Dublin, Ohio-based Healthspot chose to liquidate under Chapter 7 of bankruptcy law rather than reorganize under Chapter 11.
Columbus attorney Myron N. Terlecky, who is serving as the bankruptcy trustee for HealthSpot, announced shortly after the court’s ruling Thursday that he is now accepting offers for the assets, which HealthSpot valued at $5.2 million.
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The company previously said that $3.5 million of those assets are in the form of 191 telemedicine kiosks. Just 54 of the kiosks had ever been deployed in public spots; the rest are unused.
Primary customers included Rite Aid and the Cleveland Clinic, but the $1.1 million in sales HealthSpot had generated over three years was not enough to offset stated liabilities of $23.3 million. HealthSpot reportedly raised about $48 million in venture capital in its four years in business.
The company abruptly shut down at the end of 2015 and filed Chapter 7 in January.
According to Terlecky, the bankruptcy court today gave him the OK to set up a website known as a “data room” to manage the sale. Terlecky said in a statement that he expected the sale to be complete by April.
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