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
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
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.