Situation

Following the closing of the asset sale to CareCloud, Inc. (NASDAQ: CCLD), Medsphere entered into a Transition Services Agreement (“TSA”) with the buyer to support a smooth operational handoff. With the TSA period coming to a close, the Company wanted to wind down the legal entity in a manner that properly addressed shareholder liability and brought an orderly close to the post-sale estate.

Engagement

Given G2’s familiarity with the business from the prior sale process and G2’s full-service advisory platform, the Company’s board engaged G2 to run an Assignment for the Benefit of Creditors (“ABC”) process to achieve a nimble, efficient wind-down of the remaining entity. G2 served as the Assignee, managing communications with interested parties throughout the process, overseeing the filing of the Company’s final tax returns, and directing the distribution of remaining funds to creditors.

Outcome

Despite navigating complicated shareholder dynamics, G2 ran the ABC process to a smooth and efficient close. Notably, the G2 team identified a tax-saving opportunity through a Section 382 study, which helped deliver more than $400,000 in incremental tax savings for the benefit of creditors.