CBay Group's chief executive Raman Kumar's $75 million attempt to buy key business of bankrupt medical technology US firm Spheris may get stuck with Larry Ellison-led Oracle, globally the second biggest software maker, voicing its displeasure over the deal.

Oracle America has objected to the proposed sale (of selected asset and liabilities) of Spheris to CBay, saying it wants the US court to refuse any provision that would allow for the 'unauthorised' transfer of Oracle's software. Oracle is a creditor and contract counter-party in the Spheris bankruptcy case.

AIM-listed CBay Holdings, a provider of technology-enabled medical transcription and related healthcare revenue cycle solutions, is planning to buy Spheris business through its subsidiaries: CBay and MedQuist (reported by FC on February 5, 2010).

Spheris filed for Chapter 11 bankruptcy protection on February 3, announcing plans to sell its North American operations and India operations to CBay Group.

According to Oracle, the purchase agreement between CBay and Spheris contemplates amongst other things a transition services agreement, which could grant the acquirer(s) and Spheris rights to allow simultaneous use of, and access to, Oracle’s software.

Oracle submitted in the court that it does not consent to any proposed assignment, so the Oracle software agreements (with Spheris) are non-assignable. The matter will be heard on April 12, a day before the US court starts auction of the Spheris assets. CBay Group had earlier anticipated that the acquisition will close by April.