Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Microphage Files For Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: January 15, 2013
Key Contacts
Back
Microphage, a company that specializes in bacterial detection innovation and technology, has filed for Chapter 11 bankruptcy protection under bankruptcy law in Colorado.
The company listed assets from $500,000 to $1 million, and liabilities between $1 million and $10 million.
Microphage is best known as the manufacturer of the first U.S. blood test that identifies antibiotic-resistant staph infections, according to the Denver Business Journal. The technology works similarly to other instrument-free test kits, and allows individuals to determine the results in a matter of hours, rather than days. The company first began marketing the test kits in Europe in 2009, and later received approval from the Federal Drug Administration to market them in the U.S. in 2011.
Following production of this product, known as KeyPath, the group signed an agreement with Cardinal Health that would not only allow it to fund its operations, but also distribute its products widely among hospitals and clinics throughout the U.S. Cardinal Health – one of the nation’s largest medical distributors – is listed as the group’s largest creditor, with $2 million in claims against Microphage. Roughly $1 million of this amount is secured.
Jack Wheeler, who co-founded Microphage in 2002, noted that the group was primarily funded with angel investors before the deal with Cardinal was finalized, and said he is disappointed that the company is forced to go the bankruptcy protection route.
“I think that the technology was extraordinarily strong,” he told Colorado newspaper the Times Call. “It was unfortunate that we didn’t have the significant funding the last four or five years that was needed. In the field of clinical diagnostics, you need significantly more investments than an angel investor can provide.”
If you face bankruptcy issues in your business or would like to discuss the topic above, please call me, Joel Glucksman.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, Little Falls, NJ, New York City
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.