Saturday, March 02, 2013

Small Smiles Dental Centers Bankruptcy–It’s complicated

It’s complicated to liquidate a company operating illegal dental clinics.  As of February 21,2013 there have been 630 various pleadings filed in the bankruptcy case of Small Smiles Dental Centers. The Docket report is dang near 70 pages.  Even it is an interesting read. Hot smile

If you currently work for Small Smiles Dental Centers or have EVER worked for Small Smiles Dental Centers you need to read this carefully. I realized they mass mailed a “Summary” of the Liquidation and Trust Agreement, as well as a “Ballot” but the key word is “summary”. 

This junk company is an albatross that will forever more hang around the neck of every executive, every regional or sub-regional manager and every dentist who ever worked there. You will constantly be looking over your shoulder for the next 10 years or longer. 

The last time I took the bar exam was…  uh… NEVER, so read it and draw your own conclusions.  

This the the current PROPOSED Plan of Reorganization and not approved by any means as of yet.  There are objections by their malpractice carrier on file, and that’s where the dentists come into play even more I suspect.

[Now, if I found myself in the middle of a malpractice lawsuit and being represented by an attorney assigned to me by a malpractice insurance company who didn’t want to cover claims because they got hoodwinked by some slick willy system scammers, I’m not sure I’d feel that particular attorney had my best interest in mind.  Think about it.]

Proposed Second Amended Joint Plan of Reorganization Doc 594 01-11-2013

I particularly enjoyed this section on page 17.

4.17(h) Claims Against Former Affiliates. Each holder of a Class 5(a) Claim will retain any and all claims and legal rights such holder may have against any of Danny DeRose, Edward DeRose, Michael DeRose, William Mueller, or Adolph Padula. All holder of Class 5(a) Claims will be entitled to initiate and prosecute any such claim against any or all of Danny DeRose, Edward DeRose, Michael DeRose, William Mueller, or Adolph Padula without restriction in the tort system. To the extent the automatic stay in these Chapter 11 Cases or any other limitation imposed by these Chapter 11 Cases would limit any such action, such automatic stay or limitation will be lifted thirty (30) days after the Effective Date of the Plan

Summary of Liquidation and Trust Agreement

Church Street Health Management Court Docket, February 21,2013