Latest news with #AllenSoong
Miami Herald
10-05-2025
- Business
- Miami Herald
Another major healthcare company files Chapter 11 bankruptcy
The rate of biotechnology company bankruptcy filings has been rising over the last two years with firms continuing to file petitions in 2025. Annual bankruptcy filings had been fewer than 10 each year from 2011 through 2022, but began increasing in 2023 with 14 filings and 13 filings in 2024. Filings in 2023 were the highest since 2010, when 14 biotech firms filed that year as well. Don't miss the move: Subscribe to TheStreet's free daily newsletter Among the biotech firms to file for bankruptcy last year were Acorda Therapeutics, the Pearl River, N.Y., maker of Parkinson's disease and multiple-sclerosis therapies, which filed for Chapter 11 protection on April 1, 2024. Related: Another major health care company files for Chapter 11 bankruptcy Gamida Cell Inc., which develops stem cell treatments for several blood cancers and other disorders that include leukemia and lymphoma, on May 13, 2024, filed a prepackaged Chapter 11 bankruptcy Companies filing for Chapter 11 in 2025 include Omega Therapeutics, which filed its petition on Feb. 10, 2025, with a restructuring support agreement that called for its parent affiliate Pioneering Medicines 08-B to be the stalking-horse bidder with a credit bid of $9.92 million in debtor-in-possession financing, a roll-up of about $1.5 million in prepetition debt, assumed liabilities, and cure amounts. Austin, Texas-based biotechnology company Molecular Templates Inc., which develops cancer treatment drugs, filed for Chapter 11 bankruptcy on April 20, 2025, with plans to hand its assets over to its secured lender as part of a restructuring support agreement. Finally, distressed biotechnology company Synthego Corp. filed for Chapter 11 bankruptcy protection on May 5, seeking to sell its assets to its prepetition lender. Related: Major healthcare provider files Chapter 11 bankruptcy The debtor listed $50 million to $100 million in assets and $100 million to $500 million in liabilities, including $73.4 million in secured debt owed to its prepetition lender Perceptive Credit Holdings III L.P. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The debtor's largest unsecured creditors include Wellington Hadley Harbor Master Investors, owed $51 million; 8VC Co-Invest Fund I, owed $37.1 million; and 8VC Fund I LP, owed $15 million. The debtor had rapid revenue growth from sales of its cutting-edge gene editing tools and solutions to major research and biopharmaceutical companies around the world from 2020-2023, according to a declaration by the debtor's Chief Restructuring Officer Allen Soong. Revenue growth was outpaced by the cost and investment required to support the continued advancement of its technologies, which led to declining margins and growing operating losses. The company raised capital to continue its operations, but by the end of 2023, the company was not generating positive cash flow and its interest burden rose more than 10 times its size in 2020-2021. In spring 2024, the company sold its engineered cell business, which reduced its operating losses by one-third, but by February 2025, it wasn't able to generate sufficient revenue to service its debt. The company determined that filing for Chapter 11 protection was its best option for maintaining its enterprise value, protect business operations, and to organize a sale of the company. The debtor filed a motion to obtain up to $50 million in debtor-in-possession financing from Perceptive that includes a $37.5 million roll-up of prepetition debt, $12.5 million in new money with $5 million funded on interim order. Synthego won interim approval of the DIP loan on May 9. The debtor is also seeking approval to sell the company to Perceptive in a bankruptcy sale with a stalking-horse bid calling for a credit bid of $74.4 million of debt owed to it, as well as the $12.5 million DIP. The stalking horse also receives bid protections requiring a termination fee of 1.5% of the credit bid, up to $1 million in expense reimbursement, and a $500,000 overbid. The San Mateo, Calif.-based debtor, which was established in 2012, manufactures genetic products, such as guide RNAs, to sell to biopharmaceutical companies for the development of pharmaceuticals and to research and academic institutions. It operates a manufacturing facility in Redwood City, Calif. Synthego's customer base consists of 25% pharmaceutical and biotechnology companies, 50% small- and medium-sized biotechnology companies, and 25% academic medical centers. Related: Major healthcare company files for Chapter 7 liquidation The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
03-04-2025
- Business
- Yahoo
2 Popular Mexican Restaurant Chains Are Closing Several Locations In 2025
Mashed previously reported on beloved restaurant chains we might lose in 2025, a list that includes Red Lobster, Applebee's, and Denny's. More restaurants may be on the chopping block this year, at least based on developments at two establishments known for offering diners a selection of casual Tex-Mex fare. Both Del Taco and On the Border have recently closed a substantial number of locations throughout the country, and both companies have filed for Chapter 11 bankruptcy in an attempt to overcome mounting financial issues. It's worth noting that many Mexican and Tex-Mex-style chains have been faring quite well lately, with top restaurants like Taco Bell and Chipotle steadily expanding. Sadly, there doesn't seem to be enough good fortune to go around, especially when you factor in the rising inflation and diminished economic growth that's putting most people in a precarious financial situation. Both of the struggling Tex-Mex chains also highlight unique challenges like labor problems and increasing expenses related to the purchase of food. There's no telling what's in store for the coming weeks and months of 2025, but it's clear that Del Taco and On the Border have a tough road ahead. Read more: 14 Popular Chain Restaurant Onion Rings Ranked Worst To Best, According To Customers Coming in fourth in our worst-to-best ranking of Mexican fast food chains, Del Taco is a Tex-Mex establishment with locations throughout the U.S. Up until 2025, the chain had a reasonable presence in Colorado with 19 restaurants, but a financial issue resulted in all but one location shutting down. In February, Del Taco franchisee Newport Ventures suddenly closed the majority of the restaurant's Colorado locations in the wake of the franchisee's filing for Chapter 11 bankruptcy a few months prior (the remaining open location is owned and operated by a different company). Per a statement provided to USA Today, the closures are intended to be temporary, and the chain plans to "re-open these locations as soon as possible and will share updates as they become available." As for when the re-openings are slated to occur, the future is not so clear. The chain hasn't released any official statements since the closures, and the Del Taco website still lists all Denver and Colorado Springs locations as closed. Based on the depth of the financial struggles that franchisee Newport Ventures has experienced, it seems unlikely that the company will be able to overcome these hurdles soon. It's also worth considering a statement made by chief restructuring officer Allen Soong (as reported by Nation's Restaurant News), who said, "the crew will report to their normal shifts to assist with preparing the stores for indefinite closure, after which all crew positions will be eliminated." On the Border burst onto the restaurant scene in 1982 with the goal of offering patrons Tex-Mex-style cuisine like fajitas, tacos, and enchiladas. However, recent troubles at the chain have led to the closure of approximately 77 restaurants spread out over 24 states, including Missouri, Texas, Pennsylvania, Ohio, and Colorado, among many others. In light of its many challenges, the chain has filed for Chapter 11 bankruptcy in the belief that it can reorganize its debt and continue operating its now-truncated list of locations. As part of the filing, On the Border is requesting that its leases at the now-shuttered locations be forgiven without payment. As explained by Jonathan Tibus, the chief restructuring officer at OTB Holding LLC (On the Border's parent company), a "rapid loss of liquidity" prevented the company from keeping up with its bills, which resulted in building owners and merchants "to cut off service, withhold goods, repossess leased premises or exercise set-off rights" (as reported by Fast Company). As for the reasons behind the chain's bankruptcy filing and closures, On the Border highlights poor performance at its restaurants, issues with finding labor, and an overall volatile market as possible explanations. Read the original article on Mashed.
