Atherotech Closes Permanently and Files Bankruptcy

by San Antonio Attorney

Clinical reference lab Atherotech has permanently closed and filed for Chapter 7 bankruptcy, causing 300 employees to lose their jobs.

The Birmingham-based company abruptly closed on February 28, and declared bankruptcy on March 3.  Atherotech blames declining profit margins, more rigid regulations, and greater pressure from insurance as the top reasons for the business’ downfall.

The Alabama Department of Commerce said 300 people working for the laboratory are affected by Atherotech’s demise.

CEO Jim McClintic explained that they did their best prevail over the challenges they faced, but they failed in convincing their lenders to support them so that they can avail the funds required to keep their business going.  Because of that, they had to close for good, according to the CEO.

Atherotech had less than $50,000 in assets and in liabilities, as stated in the bankruptcy filing.

Atherotech was a spinoff of University of Alabama at Birmingham (UAB) in the year 1999 after Dr.  Jere Segrest of UAB invented a new cholesterol test instrument.

In 2010, Atherotech was acquired by Behrman Capital in New York.

In contrast to Chapter 11 bankruptcy, where the debtor seeks to continue operating after reorganization, in Chapter 7 bankruptcy, the company’s assets are liquidated and stops operations permanently.

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