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KaloBios (NASDAQ:KBIO) has filed for bankruptcy in the wake of Martin Shkreli’s arrest.
KaloBios (NASDAQ:KBIO) has filed for bankruptcy in the wake of Martin Shkreli’s arrest.
According to an article from FierceBiotech:
KaloBios ($KBIO) was days away from shutting its doors for good when controversial entrepreneur Martin Shkreli swooped in to keep the company afloat last month. Now, with its purported savior facing up to 20 years in prison on charges of fraud, the tiny biotech is roughly back where it started, filing for bankruptcy to settle its debts.
The company is applying for Chapter 11 restructuring in Delaware, listing $8.4 million in assets and about $2 million in debt, most of it owed to CROs and research institutions. If the appeal is granted, KaloBios would be able to pay off its creditors without liquidating the company or handing over control.
The filing comes a week after Nasdaq threatened to delist KaloBios’ shares, which haven’t traded since Shkreli was arrested Dec. 17. The company has said it plans to appeal that decision.