Chromos Molecular Systems Inc. today announced plans to make a restructuring proposal to the company's creditors and temporary employee layoffs.
Chromos currently has insufficient financial resources to meet all of its existing creditor obligations. The company has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. This will facilitate an orderly evaluation of strategic alternatives including those designed to strengthen the Company's business model and capital structure.
The Notice of Intention filing allows Chromos to maintain scaled-back operations and maintain the integrity of its assets while evaluating its strategic alternatives and developing a restructuring proposal for creditors. During this period Campbell Saunders Ltd., an experienced Trustee, will monitor the activities of the Company and assist it in formulating a proposal to its creditors.
As part of the scaling back of operations, Chromos has provided temporary lay-off notices to 12 employees, leaving 13 remaining employees. Further temporary lay-offs may be implemented as required.
"The Company will continue to operate while we undertake the restructuring process" said Alistair Duncan, President and Chief Executive Officer. "Management and the Board of Directors are committed to this process and are confident that it will lead to an outcome to the benefit of all stakeholders. The ongoing support of our customers, employees and suppliers will help to ensure we can achieve this outcome."
Additional financing will likely be required during the period to ensure that the company can complete the restructuring process. There can be no assurance that additional financing will be available at all or on acceptable terms to permit Chromos' current operations to continue. If Chromos is unsuccessful in raising sufficient financing it will be required to scale back further or terminate certain or all of its operations.
There can be no assurance that the company will successfully emerge from its reorganization proceedings. Approval of a Plan and emergence from reorganization proceedings are subject to a number of conditions.
About Chromos
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company's lead product, CHR-1103, is a humanized monoclonal antibody being developed as an acute treatment for relapses associated with multiple sclerosis (MS). Chromos generates revenue from its proprietary ACE System technology to engineer production quality cell lines to manufacture biopharmaceutical products including monoclonal antibodies. For more information visit our website at www.chromos.com.
Chromos currently has insufficient financial resources to meet all of its existing creditor obligations. The company has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. This will facilitate an orderly evaluation of strategic alternatives including those designed to strengthen the Company's business model and capital structure.
The Notice of Intention filing allows Chromos to maintain scaled-back operations and maintain the integrity of its assets while evaluating its strategic alternatives and developing a restructuring proposal for creditors. During this period Campbell Saunders Ltd., an experienced Trustee, will monitor the activities of the Company and assist it in formulating a proposal to its creditors.
As part of the scaling back of operations, Chromos has provided temporary lay-off notices to 12 employees, leaving 13 remaining employees. Further temporary lay-offs may be implemented as required.
"The Company will continue to operate while we undertake the restructuring process" said Alistair Duncan, President and Chief Executive Officer. "Management and the Board of Directors are committed to this process and are confident that it will lead to an outcome to the benefit of all stakeholders. The ongoing support of our customers, employees and suppliers will help to ensure we can achieve this outcome."
Additional financing will likely be required during the period to ensure that the company can complete the restructuring process. There can be no assurance that additional financing will be available at all or on acceptable terms to permit Chromos' current operations to continue. If Chromos is unsuccessful in raising sufficient financing it will be required to scale back further or terminate certain or all of its operations.
There can be no assurance that the company will successfully emerge from its reorganization proceedings. Approval of a Plan and emergence from reorganization proceedings are subject to a number of conditions.
About Chromos
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company's lead product, CHR-1103, is a humanized monoclonal antibody being developed as an acute treatment for relapses associated with multiple sclerosis (MS). Chromos generates revenue from its proprietary ACE System technology to engineer production quality cell lines to manufacture biopharmaceutical products including monoclonal antibodies. For more information visit our website at www.chromos.com.
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