In re deCODE genetics, Inc.
Chapter 11 Voluntary Bankruptcy Petition
SUMMARY: Late Monday evening, deCODE genetics, Inc. filed for chapter 11 bankruptcy protection in Delaware. The company, headquartered in Reykavik, Iceland, was incorporated in 1996 to engage "in gene discovery with the goal of bringing to market DNA-based reference laboratory tests and consumer genome analysis services."
While the company has developed and markets six such DNA-based diagnostic tests, it has primarily been devoted to research and development. As a result, the bankruptcy filings reveal that the company has recorded net losses in excess of $80 million each of the last three years and had amassed an accumulated deficit of over $712 million by the end of last year. In contrast, the company reported assets of less than $70 million as of June 30th.
deCODE genetics intends to use the bankruptcy case to effectuate a going-concern sale of (1) all of its equity in its subsidiary Islensk erfdagreining ehf and (2) all of the assets and intellectual property related to the business of that subsidiary and certain drug compounds (designated by the company as DG041, DG051, and DG071). To that end, deCODE has entered into a stalking horse asset purchase agreement with Saga Investments, LLC. Saga is also providing deCODE with DIP financing of slightly more than $11 million. Following a sale, deCODE intends to pursue the liquidation of any remaining assets pursuant to a chapter 11 plan of liquidation.
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DOCUMENT INFO
Doc Type:
Pleadings
Filed: 11/16/2009
Legal Document Name:
In re deCODE genetics, Inc.
Chapter 11 Voluntary Bankruptcy Petition
Case Number: 09-14063
Jurisdiction: Federal, 3rd Circuit, Delaware
Legal System: United States
Bankruptcy
Health
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