ChemTrak Files for Chapter 11 Reorganization.SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 7, 1998--ChemTrak Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CMTR CMTR Certified Material Test Report CMTR Combined Marginal Tax Rate ) Monday announced that it has filed a petition with the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. , Northern District of California requesting a reorganization under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
The filing was one of the terms required as part of a Letter of Intent signed with Clinimetrics Research Associates Inc., San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif., in November. Under the terms of the Letter of Intent, Clinimetrics would assume certain liabilities and pay additional funds to the company in return for the acquisition of substantially all of the assets and operations of ChemTrak. Proceeds of the sale are expected to satisfy the claims of secured creditors and a substantial amount of the unsecured creditors. The transaction is subject to the negotiation and execution of a definitive agreement. Implementing the agreement requires the company to file the Chapter 11 reorganization prior to completing the agreement. The agreement is subject to the approval of ChemTrak's board of directors, its creditors' committee creditors' committee A group of lenders who seek to protect their interests in connection with a borrower that experiences financial difficulties. and the bankruptcy court. ChemTrak has a range of products for home use that are available at all major chain drug and mass merchant outlets. The Parent's Alert Home Drug Test Service, a counselor-supported, home drug test service committed to helping parents prevent and eliminate drug use by their children, originally licensed from Parents' Alert Inc., was returned to Parents' Alert Inc. on Nov. 16, 1998, pursuant to an agreement with ChemTrak's creditors' committee. The CholesTrak Home Cholesterol Test Cholesterol Test Definition The cholesterol test is a quantitative analysis of the cholesterol levels in a sample of the patient's blood. Total serum cholesterol (TC) is the measurement routinely taken. and the ColoCARE Home Test to Detect the Early Warning Signs of Colorectal Disease are both designed to help consumers take a more active role in their personal health care. ChemTrak is being represented by Lincoln Brooks and David Caplan David Caplan (born November 15, 1964) is a politician in Ontario, Canada. He is currently a member of the Legislative Assembly of Ontario, and is a cabinet minister in the government of Liberal Premier Dalton McGuinty. of the Palo Alto law firm of Brooks & Raub PC. An informal creditors' committee is being represented by Craig Prim and Thomas Gaa of Murray & Murray PC, also of Palo Alto. Located in Sunnyvale, ChemTrak is a medical diagnostics company offering reliable and easy-to-use medical testing systems for in-home use and use in doctors' offices. ChemTrak medical tests are designed to screen and diagnose health conditions with accuracy comparable to laboratory tests. The statements in this release regarding products and revenues are forward-looking and subject to risk and uncertainty, and future results could differ materially from past performance. For a detailed discussion of factors that may affect the company's operating results, interested parties should review the company's Securities and Exchange Commission reports, including the ChemTrak Inc. Annual Report on 10-K for the year ended Dec. 31, 1997, filed with the SEC. |
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