This Health Company Is Now At High Risk of Liquidation

January 5, 2024

A health company is now at high risk of liquidation after filing for Chapter 11 bankruptcy and failing to sell itself.

Humanigen filed for Chapter 11 bankruptcy protection in January showing roughly $500,000 in assets and about $44 million in debt.

Humanigen is a clinical-stage biopharmaceutical company focused on preventing and treating an immune hyperresponse called cytokine storm.

It created a drug, lenzilumab, designed to limit that response and help people recover from certain viruses faster.

The idea was promising but never received approval from the Food and Drug Administration.

Humanigen was welcomed to submit more evidence, but it was never able to get approval for the drug, which essentially left it as a company without a product.

The company had warned of this potential outcome back in July, reports TheStreet.

“In light of the above, and the company’s limited cash and cash equivalents, the company anticipates that it will not be able to continue as a going concern and is exploring all restructuring options, which may include commencing a bankruptcy or other insolvency proceeding sometime in the third quarter of 2023,” Humanigen said.

The company made it one quarter longer than expected, but in the end it filed for bankruptcy and the result for shareholders will almost certainly be a bad one.

“The company is evaluating term sheets relating to potential sales of assets in a bankruptcy proceeding. Given the company’s lack of liquidity, any such bankruptcy filing may result in a complete or substantial loss of value for holders of our common stock” Humanigen added.

Also Read: A US Company Now Declares An Unexpected Bankruptcy

Other Economy News Today

A popular solar company now files for an unexpected bankruptcy after facing several legal challenges and mounting debts.

Vision Solar LLC, a solar-power firm based in Gloucester, New Jersey, has now filed for bankruptcy.

The company, primarily engaged in telemarketing sales of solar panels and installations, has filed for Chapter 7 bankruptcy, indicating its intention to liquidate assets in an effort to manage its substantial liabilities.

The bankruptcy filing, made on December 28 in U.S. Bankruptcy Court, reveals the company’s precarious financial situation.

Vision Solar has declared assets totaling $8 million against overwhelming liabilities of $119 million.

This includes a whopping $96 million in unsecured claims, with the company acknowledging the unlikelihood of satisfying these unsecured creditors.

Vision Solar’s decision to file for bankruptcy stems from its inability to pay off its debts and effectively handle ongoing litigation.

The company faces over 50 legal actions across the country, with many of these cases involving allegations of consumer fraud, telemarketing violations, unfair employee terminations, and lease disputes, reports Yahoo Finance.

Notably, Vision Solar and a South Jersey telemarketing firm settled for $135,000 in July with the U.S. Justice Department and Arizona’s Attorney General over allegations of misconduct, including repeated violations of the Do Not Call registry and misrepresentation of costs and savings to customers.

Additionally, Connecticut Attorney General William Tong sued Vision Solar in March, labeling its practices as predatory and highlighting complaints about high-pressure sales tactics, misrepresentations regarding financing and tax credits, and unpermitted work that burdened homeowners with dysfunctional systems and unaffordable loans.

Also Read: Wells Fargo Now Warns of Massive Layoffs For 2024

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