New Delaware Chapter 11 Filing – Halt Medical (17-10810-LSS)

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California-based Halt Medical, Inc.,  a medical device company, filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (17-10810).  The petition lists between $1-10 million in assets and between $100-500 million in liabilities. The Debtor’s proprietary and patented product, i.e. Acessa, is a minimally-invasive alternative to hysterectomies that has been approved by the FDA.  According to the First Day Declaration, American Capital, the Debtor’s senior secured lender, majority stockholder, and primary capital provider was acquired by Acres Capital earlier this year and has informed the Debtor shortly thereafter that it will not provide further financing. The First Day Declaration also states that the Debtor filed for chapter 11 protection in an effort to preserve its going-concern value and that it enters chapter 11 with Murray Enterprises, LLC as the Stalking Horse.  An affiliate of the Stalking Horse Purchaser agreed to provide DIP Financing.  Donlin, Recano & Company is the proposed claims agent.  The case has been assigned to the Honorable Laurie Selber Silverstein.

Contact Norman L. Pernick and Nicholas J. Brannick for more information.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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