RONKONKOMA, N.Y., Dec. 12 /PRNewswire/ -- ProRhythm, Inc. announced today that on December 11, 2007, it filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The decision to proceed with Chapter 11 was a result of the inability to reach an agreement with all involved parties on financing terms and participation. The company intends immediately to seek relief from certain contractual restrictions or blocking rights, which currently are an impediment to its financing efforts. ProRhythm expects to file its Plan of Reorganization, and to emerge from Chapter 11 within 6 months.
Subject to court approval, the company has bridge financing in place and expects to meet all of its financial obligations going forward and will continue during this time to work toward completion of the focusAF Clinical Trial for the treatment of atrial fibrillation with the HIFU Ablation System.
Since 1997, ProRhythm has pioneered the application of HIFU to advance the minimally invasive treatment of complex medical conditions. In recent years ProRhythm has concentrated its efforts on the development of HIFU for the treatment of a debilitating arrhythmia, atrial fibrillation. AF is an uncontrollable, rapid, heartbeat that results in a significant decline in the quality of life and may lead to serious complications. Globally, in excess of 6 million people are afflicted with AF and the current treatment options are expensive, often inadequate and non-curative, as with the case of drug therapy.
ProRhythm's HIFU Ablation System is currently under investigation in clinical trials in the United States to treat AF. ProRhythm believes that its technology will eventually play a significant role in improving the lives of countless individuals who are afflicted by atrial fibrillation.
Further information can be found at www.prorhythm.com
SOURCE ProRhythm, Inc.