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
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026
For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck
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.