The once high-flying diagnostic company Nanogen has filed for Chapter 11 bankruptcy protection, saying that it plans to sell off almost all its assets to French company Elitech Group for $25.7 million. Nanogen had planned to merge with Elitech last summer, but the deal collapsed when Elitech didn't get its financial statements to comply with U.S. accounting rules, according to the San Diego Union Tribune. Without completed financial statements, Nanogen fell into default in February. The company has retained Cowen & Co. to help it explore its options.
According to a statement, Nanogen won't have enough funds to permit distributions of cash or other property to its shareholders unless the company manages to sell its assets for significantly more than Elitech has offered. "In its Chapter 11 filing, the company said it had assets of $14.7 million and debts of $41.5 million as of March 27. Since it went public in 1998, the company has accumulated more than $400 million in losses," reports the Tribune. The filing does not affect the operations of Nanogen Advanced Diagnostics, the company's European affiliate located in Milan, Italy, or NAD's creditors and lenders as NAD is not a party to the Nanogen's bankruptcy filing.
In its heyday Nanogen's stock soared to $100; now it sits at just 4 cents.
- here's Nanogen's release
- see the in-depth San Diego Union Tribune report