Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.AtheroGenics, a pharmaceutical company focused on the treatment of chronic inflammatory diseases, has consented to the involuntary Chapter 7 petition filed against the company on September 15, 2008 in the US Bankruptcy Court for the Northern District of Georgia, and has filed to convert the case to a case under Chapter 11 of the US Bankruptcy Code.
Subscribe to our email newsletter
According to AtheroGenics, the filing became necessary as a result of the company’s substantial debt burden, which created a significant impediment to its ability to effectively develop its primary asset, AGI-1067.
During the bankruptcy proceedings, AtheroGenics expects to sell the company and/or its key assets. Proceeds from any transactions will be distributed to the company’s stakeholders, including its creditors. Prior to the sale process, AtheroGenics said that it cannot forecast the amount of these proceeds or whether the combination of sale proceeds and cash on hand will exceed the company’s liabilities. Therefore, the company said that it cannot predict whether or not any proceeds will be distributed to shareholders.
AtheroGenics has retained the services of Merriman Curhan Ford and Company to assist with the sale of the company and/or its key assets during the Chapter 11 proceeding. The company has also retained King & Spalding to serve as its legal advisor in the bankruptcy proceeding.
Russell Medford, president and CEO of AtheroGenics, said: “We believe that the Chapter 11 filing is a necessary step in response to the creditors’ involuntary liquidation petition. We remain hopeful that AGI-1067 will ultimately continue to be developed, as we believe that it has real potential to be the first diabetes treatment that could reduce serious cardiovascular events. There remains a significant medical need and commercial opportunity for a drug with this profile.”