Settlement proposal in Relief Telemed bankruptcy case dropped

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Vishal Vasanji, former CEO of Relief Telemed. (Don Kadair)

The parties involved in the Relief Telemed bankruptcy case have agreed to start over on a possible settlementas court documents shed new light on the theft charges against the former CEO and the company’s challenges.

The company’s bankruptcy attorney plans to create a new proposal for creditors and shareholders to consider before a hearing scheduled for July.

Relief accuses founding CEO Vishal Vasanji of transferring at least $233,825.24 in company funds to two LLCs, one he controlled with his wife, brother and sister-in-law, and one owned by two other relatives.

“Vasanji appears to have paid for himself, his mortgage and his children’s school fees from the debtor’s operating account,” Relief claims in a court filing.

Vasanji denies any wrongdoing or liability to the company and says he has claims against Relief.

Relief initially decided to settle with Vasanji to avoid a costly and protracted legal battle, and expected at least $500,000 in billing from UL Lafayette for COVID-19 testing that would allow it to reimburse claim holders with interest. The company’s revenue outlook darkened when the state of Louisiana “effectively declared the end of the COVID-19 pandemic.”

Dr. Chad Prather, one of the company’s creditors, opposed the proposed settlement, arguing that the settlement amount ($60,000) was not enough given the illegal transfers that Vasanji is accused of. have done.

Relief Telemed, headquartered at Nexus Louisiana Tech Park, renamed like Relief last year. In December, the company’s directors voluntarily filed for Chapter 11 bankruptcy, allowing the company to continue operating.

Co-founders Vasanji and James Davis considered their on-demand healthcare delivery platform as a “healthcare server”. Vasanji reported an increase in demand for the telemedicine platform as the pandemic raged in 2020 before moving to COVID-19 testing.

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