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TUCSON, Ariz. - Accelerate Diagnostics, Inc. (NASDAQ:AXDX), a medical technology company with a market capitalization of $11.74 million and annual revenue of $11.7 million, has begun a Chapter 11 bankruptcy process and is moving forward with plans to sell its assets in a court-supervised sale. According to InvestingPro data, the company has been struggling with a significant debt burden and rapidly burning through cash, with a weak financial health score of 1.51. The company filed for bankruptcy in the District of Delaware and has arranged for debtor-in-possession financing to maintain operations during this period.
The company has secured a commitment for up to $12.5 million in debtor-in-possession (DIP) financing, subject to Bankruptcy Court approval. This financing aims to provide the liquidity Accelerate needs to continue its day-to-day operations and fulfill its obligations to employees, vendors, and customers throughout the restructuring process. The company’s current ratio of 0.71 indicates its short-term obligations exceed its liquid assets, highlighting the urgency of this financing.
Before the Chapter 11 filing, Accelerate reached an agreement with Indaba Capital Management, a major holder of the company’s prepetition secured notes, to purchase substantially all of the company’s assets. The proposed "stalking horse" bid from Indaba includes a credit bid of $36.9 million of secured notes and the DIP financing, certain assumed liabilities, and excluded cash to help wind down the company after the sale closes. This transaction is part of a sale process under Section 363 of the Bankruptcy Code, which allows for the possibility of higher or better offers through a court-approved bidding process.
Accelerate will oversee the bidding process in consultation with its advisors and under the supervision of the Bankruptcy Court. If additional qualified bids are received, an auction will be held. If no other qualified bids emerge, Indaba will be considered the successful bidder.
The company’s legal counsel is Fried, Frank, Harris, Shriver & Jacobson LLP, with Solic Capital as the financial advisor and Perella Weinberg Partners L.P. as the restructuring investment banker.
The sale process and Chapter 11 case details, including Bankruptcy Court documents, are available online, providing transparency for interested parties. This announcement is based on a press release statement from Accelerate Diagnostics, Inc. For investors interested in monitoring distressed companies and identifying potential turnaround opportunities, InvestingPro offers comprehensive financial health analysis and real-time alerts on over 1,400 US stocks through its detailed Pro Research Reports.
In other recent news, Accelerate Diagnostics, Inc. has submitted its Accelerate WAVE™ system to the U.S. Food and Drug Administration for 510(k) clearance. This system is designed to provide rapid antimicrobial susceptibility testing results, potentially improving patient outcomes by enabling quicker targeted antimicrobial therapy. In another development, the company has expanded its Board of Directors with the addition of two independent members, Paul Shalhoub and Gilbert Nathan, who will each receive a monthly compensation of $25,000. Alongside these appointments, retention bonus agreements were approved for the Chief Financial Officer and Chief Technology Officer, amounting to $159,650 and $171,458, respectively. Furthermore, a retention agreement was established with CEO Jack Phillips, granting him a $200,000 bonus under specific conditions. These strategic moves are part of the company’s efforts to maintain leadership stability and explore value-maximizing alternatives. The company has also formed a Special Committee to oversee strategic options, though no details on potential outcomes have been disclosed.
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