Scooter Store Enters Ch. 11 Amid Medicare Billing Probes

Law360, Wilmington (April 15, 2013, 9:18 PM EDT) -- Private equity-controlled scooter and wheelchair seller The Scooter Store Holdings Inc. entered Chapter 11 protection Monday following civil and criminal investigations into its Medicare billing practices, seeking to sell itself as going concern in about three months.

Affiliates of Sun Capital Partners Inc. hold a 66.8 percent voting ownership interest in the Texas-based firm, which was joined in bankruptcy by 71 subsidiaries and listed debts between $50 million and $100 million on its bankruptcy petition.

Challenges to its business, changes in health care laws and government...
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