Former Employee Information


Employee Frequently Asked Questions

1. What was announced?

We are pleased to have announced that we have entered into an agreement pursuant to which MedQuist and CBay have agreed to purchase substantially all of Spheris’ assets. This transaction should allow customers to continue receiving high-performing services through a company with a stronger capital structure

Spheris intends to implement the transaction under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Court”). Spheris India, a subsidiary of the Company, will be part of the proposed transaction but will not file for bankruptcy. We expect operations to continue as usual during the restructuring process.

2. Why is Spheris doing this?

Throughout the past year, Spheris has taken steps to strengthen its operations and customer service, and these initiatives are already achieving solid results. You may also know that Spheris has also been engaged in constructive discussions with certain key constituents of the Company to identify ways to enhance financial flexibility for our operations. The process is expected to address our capital structure and transition our business to an entity with greater financial flexibility, allowing further improvement and investment in the business, which is good news for the Company and those we serve.

3. What is Section 363 of the Bankruptcy Code and how long before the transaction closes?

This is a section of the United States Bankruptcy Code that helps companies complete sales or transactions. Other parties will have an opportunity to submit higher and better offers under this Court-supervised process. Subject to certain conditions, we expect that the sale will be completed in the first half of 2010.

4. How will this process affect day-to-day operations?

During this process, the Company expects its operations will continue as usual. Throughout this process, we will remain focused on customer satisfaction, and expect to receive financing to help us meet our post-petition obligations to customers, employees and suppliers.

5. Who is MedQuist/CBay?

MedQuist and CBay are portfolio companies of CBaySystems Holdings Ltd. and leading providers of medical transcription software and services.

6. What would you do if another party makes a competing offer?

The Court will supervise a process that will allow other parties to have an opportunity to submit higher and better offers. We believe that the process will transition our business to an entity with greater financial flexibility, allowing further improvement and investment in the business.

7. Will management change as a result of the restructuring process?

We anticipate that MedQuist/CBay will offer employment opportunities to the majority of our employees.

8. Where can I go for additional information?

Additional information is available through the Company’s website, www.spheris.com.

9. What should I do if Spheris owes me money related to my former employment?

Under Chapter 11, obligations owed to former employees are generally treated like other unsecured obligations of the company. Former employees that believe they are owed money from the Company related to service prior to February 3, 2010, the Chapter 11 filing date, will need to file a proof of claim form.

10. How do I file a proof of claim form?

All potential claimants of Spheris will be identified within the coming weeks and sent a proof of claim form and related documents. Information on how to file a proof of claim will be included in this package of documents.

11. What happens to the assets in my 401(k) related to my previous employment at Spheris?

Your current retirement plan investments in your 401(k) will not be affected. The assets in the 401(k) plans are protected by federal law, are not subject to the claims of the Company’s creditors, and will not be impacted by the proposed transaction. With regard to your retirement investments, your 401(k) account will continue to function as it has in the past. Any change in the value of your 401(k) is due, as always, to fluctuations in the value of the securities you have selected to own.