SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest Event reported) December 17, 1998
BMJ Medical Management, Inc.
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(Exact name of Registrant as specified in its charter
DELAWARE 001-13785 65-0676079
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(State or other (Commission File No.) (I.R.S. Employee
jurisdiction of Identification No.)
incorporation)
4800 North Federal Highway, suite 101E, Boca Raton, Florida 33431
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number including area code:(561) 391-1311
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ITEM 3. Bankruptcy or Receivership
On December 17, 1998, BMJ Medical Management,Inc. (the "Company") and
its subsidiaries filed for protection under Chapter 11 in the United States
Bankruptcy Court for the District of Delaware. the case has been assigned to
United States Bankruptcy judge Walrath. The consolidated caption is in re BMJ
Medical Management, Inc., et al. An initial hearing is expected to be held on
December 23, 1998.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release dated December 17, 1998.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
and Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BMJ Medical Management, Inc.
DATE: December 18, 1998 By: /s/ David H. Fater
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David H. Fater
Executive Vice-President and
Chief Financial Officer
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BMJ Medical Management, Inc. Files for Protection Under Chapter 11 of the
Bankruptcy Code
BOCA RATON, Fla., Dec. 17 /PRNewswire/ -- BMJ Medical Management, Inc. (Nasdaq:
BONS - news) today announced that it and five of its subsidiaries filed for
protection under Chapter 11 of the United States Bankruptcy Code in Wilmington,
Delaware. The filing was necessitated by, among other things, actions by two
medical groups in Florida affiliated with the Company that unjustifiably
withheld monies due the Company related to the collection of the Company's
accounts receivable. The Company has filed a complaint and a motion for a
temporary restraining order as part of its efforts to recover these funds,
continue collection of accounts receivable and compel compliance by affiliated
medical groups with their respective obligations under their Management Services
Agreements.
Over the course of the last several weeks, the Company has discussed with
various affiliated medical groups a restructuring of certain of its obligations,
and those of the medical groups, under the respective Management Services
Agreements. To date, none of the Management Services Agreements have been
formally amended or terminated. The Company intends to actively continue these
discussions.
The Company also announced that it has obtained post-petition financing
commitments from its prepetition senior secured lenders in amounts necessary,
from time-to-time, to fund the Company's business operations under the terms of
the Management Services Agreements.
Prior to the petition date, four medical groups filed lawsuits against the
Company seeking damages and rescission of their Management Services Agreements
on account of alleged breach of contract, fraud and securities fraud. These
lawsuits and all other prepetition actions against the Company (including the
debtor-subsidiaries) have been stayed from proceeding pursuant to the provisions
of the Bankruptcy Code.
Separately, the Company announced that its Board of Directors has elected
Charles Sweet to serve as President and Chief Executive Officer succeeding
Donald J. Lothrop, who will remain on the Board of Directors.
Charles Sweet, 42, joined BMJ Medical Management, Inc. in May of this year and
has served as Chief Operating Officer and Chief Information Officer. His
background includes fifteen years of experience with Mercy Health Services, a
large integrated health care system located in the Midwest. Commenting on his
appointment, Mr. Sweet said, "Don Lothrop's unselfish contributions to the
management of BMJ during the past few months has been greatly appreciated. I am
more than happy to accept a leadership role in this most difficult chapter of
BMJ's history."
BMJ Medical Management, Inc. is a single specialty Physician Practice Management
Company focused on musculoskeletal care consisting of orthopaedic surgery,
physiatry, rheumatology and podiatry as well as ambulatory surgery centers, MRI
diagnostic services and physical and rehabilitative therapy.
