Able Labs files for bankruptcy protection
Laboratories took a decisive turn yesterday when the company filed
for Chapter 11 bankruptcy protection, reports Phil Taylor.
Able has not been generating income or revenue for some weeks after it was forced to suspend all manufacturing operations and recall its products because of quality control issues at its New Jersey manufacturing plant.
Able said the Chapter 11 petition - filed in the Bankruptcy Court for the District of New Jersey - is intended to assist the company to continue operations while it works with the US Food and Drug Administration (FDA) to tackle deficiencies thrown up by agency inspection teams, which included laboratory and deviation from standard operating procedures.
The ultimate aim, according to Able, remains to improve the quality of its systems and controls and, subject to FDA authorisation, reintroduce products to the market.
The filing contains a request to retain a chief restructuring officer and a director of restructuring at the company, which has seen the departure of two chief executives since 23 May, when manufacturing ceased.
During the restructuring process, vendors, suppliers and other providers will be paid under normal terms for goods and services provided after the filing date, said Able in a statement.