UPDATE 1-Nanogen files for Chapter 11, to sell assets to Elitech
May 14 (Reuters) - Diagnostic products maker Nanogen Inc NGEN.PK said it had filed for bankruptcy protection late on Wednesday and agreed to sell substantially all its assets to Elitech Group for $25.7 million.
The deal is subject to approval from the bankruptcy court, which may solicit higher and better offers for the assets through an auction process.
Nanogen and Elitech had announced plans to merge in August last year but the deal could not be completed by a March 31, 2009, deadline.
In its Chapter 11 filing with a Delaware court, the company listed assets of $14.7 million and debt of $41.5 million.
Nanogen said that although its business operations continued to improve, its available cash resources were inadequate.
Nanogen said in its filing that it employed about 190 people as of the petition date.
The company said that because of certain restructuring activities conducted earlier, it expects to have break-even earnings before interest, tax, depreciation and amortization (EBITDA) on revenue of more than $60 million in 2009.
Shares of San Diego, California-based Nanogen, which were once listed on Nasdaq, closed at 12 cents Wednesday on the pink sheets.
The case is In re: Nanogen Inc, U.S. Bankruptcy Court, District of Delaware No: 09-11696. (Reporting by Santosh Nadgir in Bangalore; Editing by Mike Miller)