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DeCode files for bankruptcy

Published on 19 Nov 2009 under category: legal

A firm which pioneered genetic testing has filed for bankruptcy.

The financial action has been taken by DeCode Genetics, an Icelandic company which develops medication based on human genome research.

In a statement, the company said: "In recent months, DeCode and its advisers have explored multiple restructuring alternatives, including the sale of specific portions of DeCode's operations, the sale or license of its drug discovery programmes, the restructuring of its outstanding convertible notes and the obtaining of new equity financing."

The firm also revealed that it expects to be liquidated in a plan which would suit the bankruptcy court should an asset sale be agreed.

It was also revealed in the statement that several first day motions have been arranged with the bankruptcy court so that the company can continue to operate.

Last week, the Ambac Financial Group warned that it could file for bankruptcy protection if its cash position does not improve.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.