The U.S. Bankruptcy Court issued an order approving Response Genetics’ motion to dismiss its Chapter 11 proceeding.
The dismissal order states, “The Debtor has demonstrated sufficient bases for the dismissal of the Chapter 11 Case, including the fact that the Debtor has no ongoing business operations and has completed the claims reconciliation process….The Committee and its professionals are hereby authorized to distribute the Settlement Funds to the holders of allowed general secured claims per terms of the Compromise Order and consistent with holders of claims described on Exhibit A to the motion. To the extent the Debtor or the Committee retains any excess Wind Down Funds, the Debtors and its professionals shall turnover such funds to SWK.” As previously reported, “The primary purpose of the Chapter 11 Case was to effectuate a sale of substantially all assets and wind down the operations of Response Genetics (‘RGI’). After an extensive prepetition and postpetition marketing effort, the Debtor successfully completed a sale of RGI’s assets to Cancer Genetics, Inc. As a result of the Sale and the anticipated imminent completion of the claims reconciliation process, the Debtor is prepared to distribute cash in amount equal to 10% of the allowed amount of general unsecured claims, which is consistent with the terms of settlement among the Debtors, prepetition lenders, and the Official Committee of Unsecured Creditors and was approved by the Court on October 2, 2015.”
The Company, which is engaged in the research, development, marketing and sale of pharmacogenomics-clinical diagnostic tests for cancer filed for Chapter 11 protection on August 9, 2015, listing $14 million in prepetition assets. Read more life sciences bankruptcy news.
The post Response Genetics Case Dismissed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.