RICHMOND, Va. (WRIC) — After a recent expansion and new building in downtown Richmond, Health Diagnostic Laboratory, Inc. filed for Chapter 11 bankruptcy on Monday.
8News investigator Kerri O’Brien has been digging through court documents and found a six page list of creditors who are all owed money from the blood testing company. Number one on the list: The U.S Department of Justice owed more than $49 million.
HDL also owes the City of Richmond more than $450,000 in taxes and another $250,000 is due to the Washington Redskins.
HDL made the filing late Sunday night, citing ‘liquidity’ issues and that the company is unable to raise additional capital. The company says they regret having to file bankruptcy, but the action will allow them to restructure, strengthen finances and continue to operate without interruption.
At one point, HDL was growing quickly in Richmond. City Council even approved more than $1 million in grants to HDL so they could expand at Virginia Biotechnology Research Park. The idea was to create 635 new jobs for Richmond.
Still, volume and revenue at HDL has has been falling since 2014.
The company also has a number of outstanding legal fees, including that $49 million owed to the Dept. of Justice, as part of a settlement that ended an investigation into reimbursement practices.
HDL issued a statement today saying in part:
The fundamentals of our business model remain solid, and we are confident these actions will enable us to quickly restructure and emerge better positioned for continued growth and success.”
City officials say that HDL’s bankruptcy filing represents a default of their grant agreement, so the City of Richmond will stop making payments to the lab. As for the taxes the city is owed, the court will determine how creditors are handled.
Stay with 8News for more on this developing story.