Laser vision office closes, parent in bankruptcy

Grace Leong

Friday, April 6, 2001 | 11:16 a.m.

Canadian laser vision correction specialist Lasik Vision Corp. has ceased operations at its one Las Vegas clinic because of financial difficulties.

Vancouver, British Columbia-based Lasik Vision and its subsidiary Lasik Vision Canada Inc. were acquired in February by Icon Laser Eye Centers Inc. of Toronto, Ontario, in an all-stock transaction. Icon said it had hoped that the merger would result in "increased revenue, profitable growth and improved shareholder value."

But Icon Laser on Tuesday said its newly acquired subsidiaries Lasik Vision and Lasik Vision Canada will file for bankruptcy under the Bankruptcy and Insolvency Act Canada, which is similar to a Chapter 7 filing in the United States.

Icon spokesman Joe Krupa said 24 Lasik Vision clinics were closed since the bankruptcy announcement. "Unless notified by Icon, this bankruptcy affects all Lasik Vision employees."

"Greater-than-anticipated operating liabilities at Lasik Vision, exacerbated by a work stoppage by Lasik Vision doctors, has necessitated this action so that Icon can focus its resources on addressing the needs of Lasik Vision's patients," said Ernest Remo, Icon's chairman.

Icon issued a statement on March 7 apologizing for a walkout by the majority of Lasik Vision center doctors over unpaid compensation for work performed before the takeover.

"There is no longer a Las Vegas Lasik Vision clinic," Krupa said. "To the best of my knowledge, the closing affects five to six employees. Icon is in the process of personally contacting all Las Vegas Lasik Vision patients who currently require post-operative care or who are awaiting surgery."

"All patients requiring post-operative care in Las Vegas should contact the doctor who originally treated them," he said.

Icon does not have any Las Vegas operations but said it is now investigating the possibility of restarting operations in Las Vegas.

Separately, the Howard Hughes Corp., which leased a property at 3993 Howard Hughes Parkway, suite 440, starting April 15, 2000, to Lasik Vision, sued on March 29 to evict the clinic after it breached a 10-year lease by allegedly defaulting on $80,284 in rents as of March 31.

The plaintiff, which said Lasik paid a $20,834 security deposit but became delinquent on rents starting June 2000, said it seeks to recover all rents it would have received under the lease that expires April 30, 2010.

Icon Laser said Deloitte & Touche LLP will serve as the bankruptcy trustee for the Canadian assets of both Lasik companies. Icon said it is currently making arrangements to find a bankruptcy trustee for Lasik's U.S. assets.