NEW YORK (GenomeWeb News) – Vermillion has received authorization from a US Bankruptcy Court to enter into a $1.5 million Debtor-In-Possession financing agreement with Quest Diagnostics, Vermillion disclosed in a filing with the US Securities and Exchange Commission on Wednesday.
Under an interim order from the court, Vermillion may borrow up to $900,000 of the $1.5 million, subject to a budget, and the agreement grants Quest certain liens, super priority expense status, and certain other rights, said Vermillion. The DIP agreement bears an interest rate of prime plus .5 percent and is payable on Feb. 26, 2010, or earlier if the Bankruptcy Court approves a plan of reorganization.
Vermillion had filed for chapter 11 bankruptcy protection last spring.
Earlier this month, Vermillion received clearance from the US Food and Drug Administration to market its OVA1 test for helping physicians determine if a woman is at risk for a malignant pelvic mass prior to surgery. Quest Diagnostics holds exclusive rights to offer the test to the clinical lab market in the US for three years.