A major lender to Arcadia Resources Inc. has moved to foreclose on the struggling Indianapolis-based business, which in turn agreed to cease operations.
Arcadia reported the foreclosure agreement with Dallas-based Comerica Bank, which Arcadia owed $11 million, in a Thursday filing to the Securities and Exchange Commission.
The closing represents the probable final fall for the once-promising health care company. Just two years ago, in May 2010, the company announced a huge expansion that it expected would add 930 jobs in Indiana by 2013.
But, according to the company’s last annual report, filed in June 2011, Arcadia administrative staff had fallen slightly in the previous year, to 229. Its field staff, most of whom are not in Indiana, had remained steady.
To help pare down debt, Arcadia completed the sale of its DailyMed pharmacy business in February to a subsidiary of Illinois-based Walgreen Co. But the $2 million in proceeds from the sale went entirely to satisfy a debt to one of DailyMed’s suppliers.
That left Arcadia with its home health care and medical staffing businesses, which were being funded by an $11 million line of credit from Comerica.
Arcadia already had drawn on the entire line of credit, which came due on April 30. The company owed about $33 million to three private equity firms that likely will not be repaid. The company had less than $1 million in assets, according to the SEC filing.
In the nine months ended Dec. 31, Arcadia had $61.5 million in revenue and posted a loss of $13.5 million.
Arcadia’s stock was delisted in August from the NYSE Amex Equities Exchange, an over-the-counter market in which shares are thinly traded.
The company is located at 9320 Priority Way West Drive on the city’s northeast side.