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news.Introgen Therapeutics, a biopharmaceutical company, has elected to file Chapter 11 petitions in the US Bankruptcy Court, Western District of Texas, as part of its ongoing restructuring plans. Introgen expects that the Chapter 11 process will facilitate the implementation of the company's recently announced strategic reorganization.
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As part of this filing, the company is seeking court approval of a sales procedures motion that will allow Introgen to market its therapeutic portfolio and other assets to prospective buyers. Introgen expects to continue core activities pertaining to each of its business units during the reorganization process and expects to emerge from Chapter 11 during 2009.
In conjunction with Chapter 11 filing, the company has filed a variety of customary ‘first day’ motions to support its employees and vendors during the reorganization process. As part of these motions, the company has asked the court for permission to continue paying employee wages and salaries and to provide employee benefits without interruption.
Additionally, during the restructuring process, vendors and business partners should expect to be paid for post-filing goods sold and services rendered to the company in the ordinary course of business.
Previously, Introgen had strategically reorganized the company’s operations to focus on the expansion of near-term revenues from its manufacturing and service business, Introgen Technical Services and it reduced its staff accordingly.
David Enloe, Introgen’s president and CEO, said: In light of our current financial state and recent market conditions, the company believes today’s actions represent the wisest alternative for our shareholders, creditors and other stakeholders.
We are very optimistic about the promise of our contract manufacturing business and will continue to focus on growing our customer base in this area. At the same time, we will continue to work with our investment banking and other advisors to explore financial alternatives for our therapeutic portfolio.