Dr. Koop LifeCare Corp. to ‘Cease Operations,’ File for Chapter 7 Bankruptcy Protection
Dr. Koop LifeCare Corp., an online health information provider, yesterday announced plans to "cease operations" and sell the company's assets, after "failing to come up with additional debt or equity financing" to fund operations, Reuters/Los Angeles Times reports. Dr. Koop, which operates the Web site drkoop.com, will file for Chapter 7 bankruptcy protection, which will require the company to pay creditors from "whatever proceeds can be generated" from the sale of assets. The company developed the Web site to "integrate health care information with the ability to purchase products online," but the site has "failed to generate expected revenue." In the first half of 2001, the company "turned its attention" to a line of vitamin and herbal supplements and received an additional $5 million in financing this fall. However, the company could not sell the supplements in time to generate "much-needed new revenue" to cover the cost of operations. Dr. Koop officials said in a press release that the company's "present financial condition precludes it from meeting operating obligations necessary to operate as an ongoing concern." The company also said that stockholders will not likely "receive any of the proceeds" from the sale of assets (Reuters/Los Angeles Times, 12/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.