Oracle tries to stop Spheris' bankruptcy sale to CBay
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Oracle tries to stop Spheris' bankruptcy sale to CBay
Bangalore: CBay Group's CEO Raman Kumar's $75 million attempt to buy key business of bankrupt medical technology U.S. firm Spheris may get stuck, as Oracle CEO Larry Ellison is showing displeasure over the deal. Larry Ellison, CEO, Oracle, is objecting the proposed sale by saying that it would allow the 'unauthorized' transfer of Oracle's software. Oracle is a creditor and contract counter-party in the Spheris bankruptcy case. Oracle states that the purchase agreement between CBay and Spheris contemplates amongst other things a transition services agreement, which could grant the acquirer(s) and Spheris rights to allow simultaneous use of, and access to, Oracle's software. Spheris filed for Chapter 11 bankruptcy protection on February 3, announcing plans to sell its North American operations and India operations to CBay Group. According to the Report of Financial Chronicle, CBay Holdings, a provider of technology-enabled medical transcription and related healthcare revenue cycle solutions, is planning to buy Spheris business through its subsidiaries: CBay and MedQuist. The matter is likely to be heard on April 12, a day before the U.S. court starts auction of the Spheris assets.

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