#United States #Tucson #Chapter 11 #Accelerate Diagnostics #Indaba Capital

Accelerate Diagnostics' Chapter 11 Filing: Restructuring and Asset Sale

In a significant move to address its financial difficulties, Accelerate Diagnostics, Inc., publicly traded on Nasdaq as AXDX, has voluntarily filed for Chapter 11 bankruptcy protection. This news, released on May 8, 2025, marks a turning point for the company, which aims to navigate through its challenges via a court-supervised process that includes the potential sale of its substantial assets.

Background of the Filing

The decision to file for Chapter 11 has come after ongoing financial pressures that impacted the company's operations. Located in Tucson, Arizona, Accelerate Diagnostics is known for its innovations in rapid in vitro diagnostics, particularly in microbiology. The company has expressed its commitment to ensuring a smooth transition during this restructuring phase without disrupting its vital operations, which include managing day-to-day administrative tasks while securing the necessary finances to maintain employee wages and benefits.

Securing DIP Financing

To facilitate continued operations, Accelerate Diagnostics has successfully arranged a debtor-in-possession (DIP) financing plan that could provide the company with up to $12.5 million. This financing is crucial as it allows the company to maintain liquidity while pursuing its restructuring plan. The potential approval of this financing, pending from the Bankruptcy Court, is expected to enable Accelerate to meet its obligations, including payments to employees, vendors, and customers during the Chapter 11 process.

The Asset Sale Process

Crucially, the Chapter 11 filing includes plans to sell substantially all the company’s assets as part of its restructuring strategy. Prior to the bankruptcy filing, Accelerate struck a preliminary agreement with Indaba Capital Management, which holds a majority of the company’s prepetition secured notes. Indaba’s offer, which serves as a “stalking horse” bid, amounts to a credit bid of $36.9 million, designed to create a baseline offer for other potential bidders.

This sale process will adhere to the procedures set forth under Section 363 of the Bankruptcy Code. It ensures an organized bidding process, allowing for other offers and potentially higher bids to be considered. Third parties will be notified of the proposed sale, and competing bids will be solicited. If no other qualified offers are received, Indaba will be recognized as the successful bidder, sealing the deal to acquire the company's assets.

The Path Ahead

Accelerate Diagnostics is supported in this process by a team of experts, including legal counsel Fried, Frank, Harris, Shriver & Jacobson LLP, financial advisor Solic Capital, and restructuring investment banker Perella Weinberg Partners L.P. This experienced team will help guide the company through the complexities of the bankruptcy process and the asset sale, ensuring compliance with legal and procedural requirements.

More details about the Chapter 11 case can be accessed via the dedicated online platform, where court documents and updates will be made available to the public. The outcome of this restructuring and asset sale will greatly shape the future of Accelerate Diagnostics and its impact on the diagnostics industry. In these challenging yet pivotal times, the company's leadership is keen to emerge stronger and continue contributing innovations to the healthcare field.

As this story unfolds, stakeholders, employees, and the investors will be closely watching how Accelerate Diagnostics navigates these waters and what it means for their future operations and market position.