By Chris Wack

Accelerate Diagnostics has voluntarily initiated a chapter 11 restructuring proceeding in the U.S. Bankruptcy Court for the District of Delaware, and will seek to sell its assets through a court supervised sale process.

The company has filed various "first day" motions with the bankruptcy court requesting customary relief that will enable it to transition into chapter 11 without material disruption to their ordinary course operations, including seeking authority to obtain debtor-in-possession financing and pay employee wages and benefits.

To provide necessary funding during the chapter 11 proceeding, Accelerate said it has received a commitment of up to $12.5 million in a multi-draw DIP financing facility. Upon approval by the bankruptcy court, the DIP financing is expected to provide Accelerate with the necessary liquidity to operate in the normal course and meet obligations to its employees, vendors and customers throughout the chapter 11 proceeding while executing on the sale process.

Prior to the filing, the company agreed to terms with Indaba Capital Management--a majority holder of Accelerate's prepetition secured notes--to buy substantially all the assets of the company. The purchase price of Indaba's stalking horse bid includes a credit bid of $36.9 million of Indaba's existing secured notes and DIP financing facility, certain assumed liabilities, and excluded cash sufficient to wind-down the company following sale closing.

If no other qualified bids are received, Indaba will be deemed the successful bidder.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

May 08, 2025 09:56 ET (13:56 GMT)

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