Cardiac Science Corp., a manufacturer of automatic heart defibrillators, filed for chapter 11 protection to sell its business after a cash crunch threatened its ability to pay employees and vendors, Dow Jones Daily Bankruptcy Review reported today. The Wisconsin-based company headed to court yesterday to request immediate access to $4.98 million of the $9 million bankruptcy loan it negotiated with its current lender, a fund associated with Los Angeles-based Aurora Capital Group. Cardiac ultimately would like to execute an exchange deal with Aurora whereby the fund would repay $6.5 million in senior debt owed to HDFC Bank, and forgive the $9 million bankruptcy loan plus another $65 million owed to Aurora in exchange for ownership of the company. Cardiac has requested permission to test that offer during an auction on Dec. 17.
