deCODE genetics Announces Approval of First Day Motions by Bankruptcy Court
News Nov 25, 2009
deCODE genetics, Inc. has announced the approval of all of its "first day" motions by the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). deCODE last week filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code with the Bankruptcy Court.
The orders issued by the Bankruptcy Court allow the company to continue to operate its business during the Chapter 11 proceedings.
In particular, the company received interim Bankruptcy Court approval of its previously-announced debtor-in-possession financing from Saga Investments, LLC, the “stalking horse” bidder for deCODE’s Iceland-based genetics subsidiary. The subsidiary conducts deCODE’s human genetics research, manages its population genetics resources, and provides its personal genome scans, DNA-based risk assessment tests and genomics services for contract customers.
The funding provided by this agreement will be used to support deCODE and its Icelandic subsidiary’s operations and full range of products and services through the conclusion of the Bankruptcy Court-supervised sale process.