A Branford provider of orthotic and prosthetic devices that has nearly a dozen clinics across the state, including in Hartford, East Hartford and Meriden, has filed for Ch. 11 bankruptcy reorganization, according to court records.
A Branford provider of orthotic and prosthetic devices that has nearly a dozen clinics across the state, including in Hartford, East Hartford and Meriden, has filed for Ch. 11 bankruptcy reorganization, according to court records.
New England Orthotic and Prosthetic Systems and five related companies petitioned a Connecticut federal judge for bankruptcy protection July 11, records show.
Formed in 1998, the company grew to approximately 30 locations across New England and New York as of several years ago. That number has since been pared back to 22, according to Bridgeport lawyer James Berman, who is representing the company and its affiliates.
The company's parent, NEOPS Holdings, reported to the court liabilities ranging from $10 million to $50 million and assets ranging from $1 million to $50 million.
New England Orthotic and Prosthetic Systems said in its petition that it owes nearly $8 million to its top 20 unsecured creditors, which include lenders, suppliers, hospitals, insurers and others.
The largest unsecured creditor is Pennsylvania's Tecum Capital Partners, which is owed $4.8 million.
NEOPS has 133 employees, according to Berman, of law firm Zeisler & Zeisler, who said the company has financing in place to remain open during the bankruptcy process.
NEOPS CEO David Mahler didn't return a call for comment.
NEOPS moved its headquarters in 2016 to a 20,000-square-foot facility on Commercial Street in Branford that was previously inhabited by Roche Diagnostics.
The federal Medicare program spent nearly $1.6 billion on braces and artificial limbs in 2015, according to the American Orthotic & Prosthetic Association, a national industry group based in Virginia.
– Matt Pilon
