Canopy Financial Files For Chapter 7
The beleaguered startup has asked a federal judge to convert its petition for Chapter 11 bankruptcy into a Chapter 7, which means it will shut down. A hearing is scheduled tomorrow on this and several other issues in Chicago. Under Chapter 7, all disputes over Canopy's finances will be handled by an independent trustee who's been appointed by the court. That means all of Canopy's creditors -- including those people who deposited money in a Canopy Health Savings Account and expected to use it to pay their medical bills -- will now have "one throat to choke," said a source close to the company. Canopy's HSA account holders have been left hanging for three weeks.
29 December 2009•2 mins read
