Aradigm announces plans for reorganization under Chapter 11
Aradigm has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the Alameda County Court District to facilitate the sale of its assets. On February 11, 2019, Aradigm determined that without confirmation of funding from its primary investor and partner, the company would not have enough funds to meet all of its future financial obligations. Therefore, the company had no alternative but to consider filing for bankruptcy protection in order to preserve its going concern value. As a result, Aradigm's Board of Directors issued a unanimous consent authorizing Aradigm Corporation to file for protection under Chapter 11 of the U.S. Bankruptcy Code. Aradigm intends to commence a process to sell substantially all of its assets to an interested party, subject to Bankruptcy Court approval. The proceeds from the sale would be distributed to satisfy the claims of its creditors, also subject to Court approval. Remaining assets, if any, would then be distributed to the company's stockholders. Aradigm remains confident in the efficacy, safety and quality of Apulmiq/Linhaliq. The company is committed to continue working toward the approval of Apulmiq/Linhaliq for Non-Cystic Fibrosis Bronchiectasis patients who have chronic infection with P. aeruginosa, resulting in severe disease with frequent exacerbations, high morbidity and mortality, and no available treatment options.