Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Healthcare Equipment & Services

Response Genetics Chapter 11 Petition Filed

Response Genetics (fdba Bio Type) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 15-11663. The Company, which is engaged in the research, development, marketing and sale of pharmacogenomics-clinical diagnostic tests for cancer, is represented by James E. O'Neill of Pachulski Stang Ziehl & Jones. According to documents filed with the Court, "…[O]n August 9, 2015, the Debtor executed an agreement (the 'Agreement') under which it has agreed in principle to sell substantially all of its business assets in a sale conducted under supervision by the United States Bankruptcy Court for the District of Delaware. The initial 'stalking-horse' purchaser under the agreement is Cancer Genetics, Inc. ('CGI'). As required by the Bankruptcy Code, the sale to CGI will be subject to overbidding by other prospective purchasers….Under the Agreement, the Debtor has proposed to sell substantially all of its assets, including its corporate office in Los Angeles, California and certain leasehold improvements, tangible personal property, intangible property, leases and contracts, accounts receivable, inventory and business records. The purchase price for the assets, subject to certain adjustments, is proposed to consist of $14,000,000, comprised of a 50/50 split in value of cash and the common stock of CGI….All shares of CGI's stock included in the purchase price will be issued directly to the Debtor's secured lenders."

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