Thread regarding Allscripts layoffs

@7ula+13V5Ewas: It's really no ones fault but your own for buying at $14. WHY would anyone do that? Especially given the stock history? Buy low, sell high. Or, as was the case for me, sell at what ever you can get that won't be a loss. :-)

Just heard from several friends. Their company will freeze the pay raise this year. One company will have a 15% pay cut cross the board. I think AS will make the same move very soon.

That being said, it is wise to keep your resume up-to-date. Nothing about this is good, and there's no guarantee it won't be a Chapter 7. But odds seem to be more toward 11.

If it is helpful, srentraPxilA in reverse was the group named in major meetings about this. They do specialize in Chapter 11, which is debt restructure or reorg. This usually means that the company will still exist, likely in this case in a much smaller form (job cuts) with much fewer products (departmental cuts) in a plan approved by creditors and confirmed in a bankruptcy court. Awful combo with bad acquisitions, bad performance, and bad circumstances.

I bought the stock at 14.00 a share. Look at what it is worth now. This is not just a result of the stock market and the healthcare records industry.

Wow, MDRX will be a penny stock soon at this rate

From HIStalk posted today:

Teladoc (up 4%)
Premier (up 3%)
NantHealth (down 18%)
Vocera (down 18%)
Cerner (down 21%)
Livongo (down 26%)
McKesson (down 28%)
Nasdaq composite (down 29%)
S&P 500 (down 29%)
Dow Jones Industrial Average (down 31%)
CPSI (down 32%)
Nuance (down 35%)
Inovalon (down 35%)
Allscripts (down 41%)
Health Catalyst (down 43%)
Castlight Health (down 44%)
Change Healthcare (down 45%)
NextGen Healthcare (down 53%)
Evolent Health (down 68%)

Yes, Allscripts is down a lot and so are a lot of other companies. I agree Allscripts is struggling and needs some top level changes. If Allscripts goes bankrupt, I think it will be Chapter 11 and not 7.

4th qtr earnings call is where the auditor information came from

Being healthcare IT isnt going to help. Their stock price has dropped nearly 50 % in the last month

It's healthcare IT so I don't think the economic downturn will affect them too much.

Does this company have the wherewithal to survive the economic downturn that is already here and likely going to get worse?

Where is the information about the consulting group coming from?

I don’t think AS is salvageable. People really need to polish up their resume before the are laid off. Bail out now.

Maybe they should not have laid off most of the US and paying out severance packages for years of service.

Anyone knows when they will receive the report and start the bankruptcy filing? Stock will drop to pennies in weeks.

http://www.401khelpcenter.com/401k_education/bankruptcy_and_401k.html#.Xm712FMpCdM

Your plan is safe but money is not. Check what happened to Enron and other companies. The termination is a process and normally take years. During that process your account is frozen. You can not access the account during that time. If you have risky investments in it, ex company stock funds, you cannot sell and buy - any transactions. You can only wish you luck during that period of time. Two of my best friends got their account wiped out and lost millions of dollars. I am lucky that time and only lost about 100k. This is my personal experience and I just want to share because somebody raised this question.

401k. In Chapter 7 bankruptcy, your employer closes its doors and sells off assets to pay creditors. The money in your 401k, 403b or similar plans is safe: The Employee Retirement Security Act keeps those accounts off-limits to creditors. Once the company closes, your plan shuts down with it; you can't fill it with any more money.

"Workers in bankruptcy situations face two important issues when it comes to their retirement benefits: access to benefits and the continued safety of their retirement assets. Generally, your retirement assets should not be at risk when a business declares bankruptcy, because ERISA requires that promised benefits be adequately funded and that retirement funds be kept separate from an employer’s business assets and held in trust or invested in an insurance contract. Thus, if an employer declares bankruptcy, the retirement funds should be secure from the company’s creditors. In addition, plan fiduciaries must comply with the ERISA provisions that prohibit the mismanagement and abuse of plan assets. If contributions to a plan have been withheld from your pay, you may want to confirm that the amounts deducted have been forwarded to the plan’s trust or insurance contract. "

"In the event your retirement plan is terminated, the plan must vest your accrued benefit 100 percent. This means that the plan owes you all the benefits that you have earned so far, even benefits you would have lost if you had voluntarily left your employment. "

From page 2 of this Department of Labor PDF

https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/your-employers-bankruptcy.pdf

No it is not true that your 401k is safe. During the bankruptcy process, your account will be frozen for years in that period. You can only get access to you account after the process ends and the money is escrowed to a bank, if anything still left for you.

Your 401 is safe. It is your money. You can leave it where it is and manage it yourself, pay a fee for them to manage it or move to another investment location. It does not look like a bankruptcy, it will probably be a buy out by a competitor. This might save some people’s jobs but a lot will be eliminated.

What will happen to our 401k account? It is under the company name too. Do we lose our money? Can we transfer it to an IRA account now? The company is losing money and no growth potential. I do not see other options except chapter 7 liquidation. I hope I can get my 401k out before it is too late.

It's really no joke when a company says its bringing in consultants to evaluate each of their groups. If AS is in that much financial trouble, major layoffs (or total bankruptcy) are a strong possibility, and likely with no severance at all. Perhaps even with no last paycheck at all. It happens. One thing for sure though: Black and his team will get paid, no matter what.

The consultants are really Chapter 11 liquidators and reorganizers.

I'm surprised no heads rolled after they purchased that dump of a company that ended them in a $130 million lawsuit with the feds! I don't think the company is strong enough to weather the storm of the government fines, high debt load and and an economic recession.

I'm sure advisors from Bain Capital will know what to do.

Rudderless and Engine-less Ship. Finally, the Board gets how bad things are. Time to chop up the company, and get back to a smaller sense of normal. Someone should investigate why business decisions were made to purchase assets and parts of the company. Senior management and the Board should be held “accountable” for the sorry shape the company has turned.

No sales in EHRs. Market saturation. Not good.

Confirmed this morning. Corporate-wide. Hiring freeze. Cut travel. Delay merit increases. Bring in consulting company to help improve processes. Bring that stock price up! All of it points to divisions being sold off or shut down. The stock market is impacting weak companies and we are now seeing that this is a company on its deathbed.

All of them.

We were told merit increases across the board have been postponed until 7/1/2020. Typically they would go into effect on 4/1/2020. There was no mention if this delay applied to bonuses. Only those that qualified for bonuses can clarify that for us.

Allscripts said in the 4th quarter earnings call that they are contracting with a consulting group to provide recommendations on turning the company around. Stock is at an all-time low and morale is even lower. So many uncertainties. The leaders of our company need to be more forthcoming of what the true issues really are.

I love the vagueness of this. WHICH business unit?