Medical laser company Diomed files for bankruptcy; selling assets to Biolitec
March 18, 2008, Andover, MA--Diomed Holdings, a leading developer and marketer of minimally invasive medical technologies, including its patented EVLT laser treatment for varicose veins, announced that it, together with its wholly owned subsidiary, Diomed, Inc., filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts, Western Division.
The petition contemplates that Diomed will sell certain of its operating assets to Biolitec AG (Jena, Germany), a manufacturer of medical lasers, optical fibers and other products, thereby enabling Biolitec to continue to operate Diomed's business in the United States. Diomed and Biolitec have entered into a non-binding letter of intent for the sale of specified assets for a purchase price of between $6 and $7 million.
"The decision to pursue the sale of the company's assets and operations through the bankruptcy process was an extremely difficult but appropriate decision for our Board of Directors to make," said James A. Wylie, Jr., Diomed's CEO. "In spite of our intensive efforts to seek a buyer for the Company outside of bankruptcy and to work with our secured lenders to avoid seeking bankruptcy protection, the impact of infringement of the Company's products in the marketplace and delays in the judicial process proved impossible to overcome," Wylie stated.
With court approval, Diomed will continue operating in the ordinary course of business as a debtor-in-possession while it pursues the sale of specified assets to Biolitec and the sale of its other assets to third parties.
Diomed develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed's EVLT laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy (PDT) for use in cancer treatments, and dental and general surgical applications.
For more information, visit www.evlt.com.