New Delaware Chapter 11 Filing – uBiome, Inc.
On September 4, 2019, uBiome, Inc. filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 19-11938). According to the accompanying Declaration, the company intends to utilize the Chapter 11 process to get a “fresh start under new management” and preserve approximately 100 jobs through a court-supervised sale process. The company is engaged in the business of DNA sequencing of gastro-intestinal microbes and the sale of products to consumers which enable them to access an analysis of the microbes present in their bodies, sometimes revealing gastro-intestinal disorders which might be alleviated by using the company’s suggestions. The company attributes its descent into Chapter 11 to questionable business decisions and alleged wrongdoing by the company’s founders.
The company reports assets between $50-100 million and liabilities between $10-50 million. It is presently expected that funds will be available for distribution to unsecured creditors. The case has been assigned to the Honorable Laurie Selber Silverstein.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtor’s counsel.
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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