Accelerate Diagnostics files for Chapter 11 protection, agrees to sell assets

Accelerate Diagnostics (AXDX) 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. To provide necessary funding during the Chapter 11 proceeding, Accelerate has received a commitment of up to $12.5M in a multi-draw DIP financing facility. The DIP financing is expected to provide Accelerate with the necessary liquidity to operate in the normal course and meet obligations throughout the Chapter 11 proceeding while executing on the sale process. Prior to the Chapter 11 filing, the company agreed to terms with Indaba Capital Management – a majority holder of the company’s prepetition secured notes — to acquire substantially all the assets of the company. The purchase price of Indaba’s “stalking horse” bid includes a credit bid of $36.9M 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. The company will manage the bidding process and evaluate any bids received, in consultation with its advisors and as overseen by the Bankruptcy Court. In the event additional qualified bids are received, the company will conduct an auction for the sale of its assets. If no other qualified bids are received, Indaba will be deemed the successful bidder.