Supplier Information
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Supplier 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. Will suppliers be paid for goods and services?
Spheris expects to pay all ordinary course post-petition expenses, including payments to suppliers, as
well as all critical vendor pre-petition claims. We are deeply committed to the partnerships we have
developed with our suppliers and will continue to work closely with them during the sale process.
During the process, we anticipate that all of our suppliers will recognize that we are a more
financially secure business and will continue to provide goods and services to our company.
10. How can I file a proof of claim / send a letter of reclamation?
The official notice of the filing will soon be sent to all listed creditors. All listed creditors will also be
sent a form for filing a proof of claim at a later date.