Cardiac monitor developer Angel Medical Systems has filed for Chapter 11 bankruptcy, according to recently posted court documents.
In its petition forms, the Eatontown, N.J.-based company lists the BioInfo Accelerator Fund as its largest creditor, owing it approximately $43 million. The owed amounts are for a combination of $20.6 million in 2012 notes, $20.4 million in 2014 notes and approximately $2 million in 2016 notes, according to the files.
Angel Medical Systems filed in Delaware bankruptcy court seeking approval for its bankruptcy plan, which includes the issuance of promissory notes for up to $2.5 million in post-petition financing.
A total of $2 million of the $2.5 million will automatically convert into Series A preferred shares at a price equal to 78% of the original purchase price, according to court documents.
Angel Medical systems developed and won FDA clearance for its AngelMed implantable cardiac monitor system, an implantable cardiac monitor designed to alert the patients with an external alarm device.
The device won FDA indications for use in patients who have had prior acute coronary syndrome events including myocardial infarctions or unstable angina, and remain at a high risk for recurrent ACS events.
The system is intended to be implanted in a procedure performed under local anesthetic. Angel Medical claimed that the implantation technique used with the device had an adverse event rate similar to pacemaker implants.
The company has not yet officially commented on the bankruptcy filing.