Millennium Health seeks bankruptcy after overbilling settlement: Reuters

(Reuters) — Millennium Health, formerly Millennium Laboratories, filed for Chapter 11 bankruptcy on Tuesday, a month after it agreed to pay $256 million to settle allegations it overbilled federal healthcare programs such as Medicare, according to court documents.

Millennium, one of the largest U.S. urine drug testing laboratories, said it was planning to use its bankruptcy to implement a debt-cutting deal. That agreement would reduce its obligations under a 2014 credit agreement to $600 million from $1.75 billion. Those creditors would also receive ownership of the company when it emerges from bankruptcy.