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Auction of Correlogic's Assets Pushed Back to Give Potential Buyers Time for Due Diligence

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This article was originally posted on June 16.

The US Bankruptcy Court for the District of Maryland last week amended the bidding procedures for the sale of the assets of diagnostics firm Correlogic Systems, changing the date of the auction from June 17 to June 24.

The change was made in response to a motion by Correlogic asking to extend the deadline in light of the fact that the company "has received requests from at least two potential purchasers seeking additional time to complete due diligence."

As per the original bidding procedures, minimum bids for the auction remain set at $850,000 for Correlogic's ovarian assets – which include its protein-biomarker based ovarian cancer diagnostic OvaCheck – and $1.35 million for its ovarian and non-ovarian assets combined.

Correlogic now must notify all creditors and interested parties of the highest and best bid and next highest and best bid by June 27, and any objections to entry of an order approving the sale must be filed by June 28.

While the date has been set for the sale of Correlogic's assets, the extent of Quest Diagnostics' and Laboratory Corporation of America's rights to the company's OvaCheck diagnostic remains in dispute (PM 05/27/2011). The two companies have maintained they possess rights to the test as it existed prior to Correlogic's bankruptcy filing on July 16, 2010 under section 365(n) of the Bankruptcy Code, but a hearing to determine what, if any, rights they have has not yet been scheduled.