THERAMetrics, a global tech-based contract research and development organization, has announced a new restructuring plan.

Despite the austerity measures taken over the past two years, the company continues to generate significant cash losses. In view of the continued deterioration of liquidity, together with doubts about the ability to achieve the additional measures outlined in the going concern footnote of the company’s half-year financial statements (published Aug. 28), officials said it is doubtful that the company will be able to support the liquidity needs of its group companies over a sustained period of time.

The board of directors has approved a comprehensive restructuring plan designed to rapidly and substantially reducing the cash needs of the group. The plan includes drastic and immediate headcount reductions, consolidation of historically decentralized functions and the sale of real estate. 

Since those measures alone will not be sufficient to secure the company’s going concern, the board of directors has asked management to approach certain potential investors, including the company’s major shareholders, to negotiate the terms of a possible cash contribution, which would fund the aforementioned plan. The board has set a final deadline of Oct. 16 for securing the necessary financial commitments.

In the event the company fails to secure the financial resources necessary to carry out the plan within the deadline, the board of directors will consider its remaining options, which include the winding down of operations and, as a last resort, bankruptcy. Management currently is drawing up stand-alone interim balance sheets, both on a going concern and on a liquidation basis, and at the same time exploring the possibility of selling certain lines of business and subsidiaries.