Urologix Inc. (OCT:ULGX) yesterday said it sold almost all of its assets to a secured creditor, which then sold them to a private company that will operate the business as Urologix LLC. The remnants of Urologix Inc. were renamed 21st North Inc.
As of March 31, 2015, Urologix owed its Twin Cities neighbor some $2.8 million, according to a regulatory filing, and lacked the scratch to pay up. All of its assets, including intellectual property, were put up as collateral to Medtronic, according to the filing. The nut consisted of a $1.3 million payment due on a $5.3 million promissory note and $1.5 million in royalties and other fees.
Last May, Urologix said it defaulted on the debt April 14, 2015, and was pursuing “strategic alternatives” to raise enough cash to pay the debt.
“The company’s ability to continue as a going concern is dependent upon its ability to address the outstanding indebtedness to Medtronic,” Urologix said at the time.
The asset sale “will enable Urologix LLC to provide urology customers and their patients with both Cooled ThermoTherapy and Prostiva RF Therapy products and services to treat BPH in the comfortable setting of a urologist’s office,” the company said.
“Immediately following the transaction, 21st North Inc. has no operations and has commenced an orderly wind down. Accordingly, 21st North intends to submit a proposal to its shareholders in the ensuing weeks to approve a plan of dissolution. The company will not be making liquidating distributions to shareholders at any time,” according to a press release.