On June 10, 2016 Diadexus, Inc. (OTCQB: DDXS), a diagnostics company developing and commercializing products that aid in assessing the prognosis of cardiac disease, reported that it is filing for relief under Chapter 7 of Title 11 of the US Bankruptcy Code in order to initiate an orderly liquidation of the assets of the Company (Press release, diaDexus, JUN 10, 2016, View Source [SID:1234513213]). The Company has been notified that its lender, Oxford Finance LLC, exercised certain of its rights under the August 2014 Loan and Security Agreement, including with respect to acceleration of obligations and demand for repayment and the removal of all of the available cash and investments from the accounts of the Company.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
The Chapter 7 case will be filed in the US Bankruptcy Court for Northern District of California. Upon the filing, a Chapter 7 trustee will be appointed in the case and the assets of the Company will be liquidated in accordance with the bankruptcy code. Additional information on the process may be obtained through the bankruptcy court.
The Company has been in discussions with Oxford Finance LLC for several months in an attempt to restructure its current loan agreement and reduce near-term financial constraints on its business but has been unable to reach an agreement. As of March 31, 2016, $13.3 million in principal remained outstanding under the Loan and Security Agreement with Oxford. As part of this process, the Company engaged Alvarez & Marsal Healthcare Industry Group, LLC as its restructuring advisor.
The Company also announced that Leone Patterson, the Company’s Chief Financial Officer (CFO) since March 2015, has notified Diadexus that she will be leaving effective immediately.