Filing Alert: Accelerate Diagnostics Chapter 11
Accelerate Diagnostics Files Chapter 11 in District of Delaware
Accelerate Diagnostics, Inc. and its debtor affiliate⁽¹⁾, a Tucson, AZ-based in vitro diagnostics company focused on rapid identification and antibiotic susceptibility testing for serious infections such as sepsis, filed for Chapter 11 protection on May 8 in the U.S. Bankruptcy Court for the District of Delaware.
The filing follows years of mounting operating losses, persistent liquidity challenges, and unsuccessful efforts to secure a going-concern transaction outside of bankruptcy. Despite commercializing key diagnostic platforms and pursuing strategic partnerships, Accelerate Diagnostics struggled with declining sales, FDA clearance delays, increased manufacturing costs, and a constrained hospital capital environment following COVID-19.
The company completed a $13.7 million equity raise in early 2024 but continued to face a severe cash burn. Prepetition marketing efforts led by Perella Weinberg failed to yield an actionable bid, prompting the company to negotiate a $12.5 million DIP facility with Indaba Capital Management, which will also serve as stalking horse bidder in a 363 sale through a $36.9 million credit bid comprising its DIP financing and existing secured notes. The Chapter 11 process is designed to facilitate a sale of substantially all assets, confirm a plan, and exit bankruptcy within 90 days.
The company reports $28.6 million in assets and $84.6 million in liabilities (as of December 31, 2024). The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 25-10837.
⁽¹⁾ Accelerate Diagnostics Texas, LLC.
Top Unsecured Claims
Key Parties
Delaware Bankruptcy Counsel:
- Andrew R. Remming
- Morris, Nichols, Arsht & Tunnell LLP
- Email: aremming@morrisnichols.com
General Bankruptcy Counsel:
- Fried, Frank, Harris, Shriver & Jacobson LLP
Restructuring Advisor:
- SOLIC Capital Advisors, LLC
Investment Banker:
- Perella Weinberg Partners LP
Signatories:
- Jack Phillips – President and Chief Executive Officer
Claims Agent:
Equity Security Holders:
- Jack Schuler – 40.1% Equity Interest
- Other Minority Holders – 59.9% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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