Filing Alert: Arch Therapeutics Chapter 11
Arch Therapeutics Files Chapter 11 in District of Massachusetts
Arch Therapeutics, Inc. and its debtor affiliate⁽¹⁾, a Framingham, MA-based biotechnology company developing self‑assembling peptide-based wound care products, filed for Chapter 11 protection on Apr. 18 in the U.S. Bankruptcy Court for the District of Massachusetts.
The filing follows significant challenges in accessing capital markets, including multiple unsuccessful attempts to uplist from the OTC markets to a national exchange – a requirement tied to burdensome convertible note covenants. According to court filings, these difficulties, compounded by high legal costs associated with financing efforts and regulatory filings (approximately $1.6 million over 18 months), hampered the commercialization of its lead product, AC5.
As liquidity tightened and noteholders became reluctant to provide further funding under workable terms, the company was left unable to meet obligations, including payroll, leading to the Chapter 11 filing. Arch now aims to secure DIP financing to fund a Chapter 11 sale process designed to maximize the value of its integrated assets, including intellectual property, regulatory clearances, and inventory.
The company reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-40409.
⁽¹⁾ Arch Biosurgery, Inc.
Top Unsecured Claims
Key Parties
Counsel:
- Alan L. Braunstein
- Riemer & Braunstein LLP
- Email: abraunstein@riemerlaw.com
Signatories:
- Terrence Norchi, MD – President
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
Stay informed on every Chapter 11 bankruptcy case with liabilities exceeding $10 million. Subscribe for free to have our coverage delivered directly to your inbox, and explore our full archive of past summaries.
If you're already a subscriber and would like to receive timely filing alerts, please reach out and we'll add you to the distribution list.
