- Accelerate Diagnostics (AXDX, Financial) files for Chapter 11 bankruptcy and plans to sell nearly all its assets.
- Indaba Capital Management places a $36.9 million "stalking horse" bid for the company’s assets.
- Company secures $12.5 million in DIP financing to continue operations during the restructuring.
Accelerate Diagnostics, Inc. (AXDX) has entered Chapter 11 bankruptcy protection in a bid to restructure its financial obligations and facilitate the sale of substantially all its assets. The company announced it has reached an agreement with Indaba Capital Management, the majority holder of its secured notes, for a "stalking horse" bid aimed at acquiring its assets.
The proposed purchase price from Indaba includes a $36.9 million credit bid of existing secured notes and a debtor-in-possession (DIP) financing facility, which will allow the company to maintain operations throughout the bankruptcy proceedings. Additionally, liabilities will be assumed, and cash will be excluded to facilitate company wind-downs.
The Section 363 sale process under the Bankruptcy Code will enable a court-supervised auction, allowing for potentially higher competing bids to maximize asset recovery. However, Indaba's position as a secured creditor and DIP lender provides a strategic advantage in the bidding process.
Despite these measures, the situation remains grim for Accelerate Diagnostics' shareholders, as Chapter 11 proceedings prioritize secured creditors, often resulting in significant or total losses for equity holders. The company continues to operate while the sale process is underway, with bankruptcy court approval needed for the proceedings to move forward.
