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news.DelSite, a research-based, biopharmaceutical and consumer products company, has filed for bankruptcy protection under Chapter 7 of the US bankruptcy laws, following which, the company will be liquidated.
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The company’s board of directors authorized the filing after extensive efforts to raise funds for its ongoing drug development operations and for its H5N1 bird flu clinical trial proved unsuccessful.
Since the company discontinued its manufacturing operations in January 2009 it has not had sufficient revenue to sustain its operations and the inability to secure additional funding has left the company’s cash resources depleted. The company is in default on its debt and is unable to pay its creditors, secured and unsecured.
As of the date of the filing of the voluntary bankruptcy petition the trustee assumed jurisdiction over all of the assets of the company, including all of the outstanding shares of DelSite Biotechnologies and Sabila Industrial, both wholly-owned subsidiaries of the company. The company ceased operations effective at the time of the filing and has no ability to continue funding the business operations of DelSite Biotechnologies or Sabila Industrial.
The company was unable to file its Form 10-K annual report for 2008 and anticipates that there will be no funds available for distribution to equity holders of the company.