New England Orthotic and Prosthetic Systems, a Connecticut-based company that operates four clinics in Fairfield County and one in White Plains, has filed for Chapter 11 bankruptcy.
According to the U.S. Bankruptcy Court filing, the company has less than 50 creditors, a book value of $19.3 million, which includes $11.8 million of intangible assets, and liabilities of approximately $17.3 million.
David Mahler, the company’s president and CEO, told the New Haven Register that a Long Island-based orthotic and prosthetic retailer has acquired the company’s debt with the goal of a merger that will be completed later this year. Mahler did not identify the retailer.
Mahler said Summer Street Partners, a private equity firm based in Buffalo, forced the bankruptcy filing because the firm “overextended us” during a May 2012 recapitalization. “That, along with some regulatory changes governing the industry, led us to make the Chapter 11 filing,” he said.
New England Orthotic and Prosthetic Systems is headquartered in Branford and operates in five states. Its Fairfield County clinics are in Bridgeport, Brookfield, Danbury and Stamford. In addition to its White Plains office, it operates Hudson Valley clinics in Monroe, Nanuet and Poughkeepsie and a satellite office in Port Jervis.