Angel Medical Systems has won approval for its planned Chapter 11 bankruptcy, according to recently released Delaware bankruptcy court documents.
The Eatontown, N.J.-based company developed the FDA-cleared AngelMed implantable cardiac monitor system intended for patients who had prior acute coronary syndrome events, including myocardial infarctions or unstable angina, and who remained at high risk for recurrent ACS events.
Angel Medical Systems filed in Delaware bankruptcy court seeking approval for its bankruptcy plan, which included 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
In its initial bankruptcy petition forms, Angel Medical Systems listed 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.
The plan was officially approved on January 4 by U.S. Bankruptcy Judge Kevin Gross, according to court documents.
Angel Medical Systems has not yet officially commented on the bankruptcy.