|Judge's ruling jeopardizes Nuance bid for Spheris|
|Wednesday, 14 April 2010 00:00|
A Delaware bankruptcy judge has ruled thatcannot transfer its contract with to a MultiModal competitor, jeopardizing ’ bid for Spheris’ assets.
The judge’s ruling, issued late today by telephone, leaves “stalking horse” bidderand Atlanta-based still in the hunt for the Franklin-based company.
An auction originally set for Tuesday was postponed until today so the judge could rule on the matter, said a MultiModal attorney. As of 5:30 p.m., the auction was still ongoing, the attorney said.
Pennsylvania-based MultiModal filed an objection to Spheris’ sale last month, arguing that its contract prevents Spheris from transferring its service contract to a MultiModal competitor without the company’s consent.
Both MultiModal and Nuance make speech recognition software used in transcribing medical records, however MultiModal holds the contract with Spheris.