NEW YORK — Microbial genomics firm uBiome said today that it has filed to convert its recently declared Chapter 11 bankruptcy to a Chapter 7 liquidation.
Under Chapter 11 of the US Bankruptcy Code, uBiome can attempt to reorganize in order to preserve the business and pay its creditors over time. Under Chapter 7, the company would sell its nonexempt property and distribute the proceeds to creditors, effectively ending its operations.
San Francisco-based uBiome said it was unable to secure access to post-bankruptcy financing or settle disputes with the fiduciaries representing its unsecured creditors. As a result, it has determined that liquidation is in the best interest of the company and its shareholders, it said.
Last month, uBiome filed for Chapter 11 following the launch of a US Federal Bureau of Investigation inquiry into its billing practices, a management shake up, and the suspension of certain business activities. At the time, the company had intended to continue sales of its main commercial product, the Explorer microbiome analysis kit.