AtheroNova and its subsidiary, AtheroNova Operations, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, Central District of California, Santa Ana division on March 2. The company's Chapter 11 cases are expected to be jointly administered.
AtheroNova is a clinical-stage biopharmaceutical company focused on the discovery, development, commercialization and licensing of novel prescription compounds and products, based in Irvine, Calif.
The company will evaluate all options, including a Bankruptcy Court supervised asset sale process, for all or substantially all of its assets to a party who could potentially be interested in continuing the company's clinical programs. During the bankruptcy process, AtheroNova will continue to operate in the ordinary course, including continuing the evaluation of its recently concluded phase Ib clinical trial in Russia. In addition, the company intends to request Bankruptcy Court approval of a series of customary motions.
The company's stockholders are cautioned that trading in the company's securities during the pendency of the bankruptcy cases is highly speculative and involves substantial risks. Trading prices for common stock may bear little or no relationship to the actual recovery, if any, by stockholders in the company's bankruptcy cases. Accordingly, AtheroNova urges extreme caution with respect to existing and future investments in its common shares.
A Chapter 11 plan of reorganization or liquidation or an asset sale under Section 363(f) of the Bankruptcy Code in the bankruptcy cases may result in holders of the company's common stock receiving no distribution on account of their interests. If certain requirements of the Bankruptcy Code are met, a reorganization plan can be confirmed notwithstanding its rejection by the AtheroNova's equity security holders and notwithstanding the fact that such equity security holders do not receive or retain any property or other value in respect of their equity interests.