HealthSpot Inc. filed for a chapter 7 bankruptcy liquidation on Wednesday, two weeks after ceasing operations, Columbus (Ohio) Business First reported on Friday. The Dublin, Ohio, startup that founders predicted would be a billion-dollar breakout had raised about $48 million over four years for its telemedicine kiosks for quick, convenient access to a doctor. The filing listed assets of $5.2 million, about $3.5 million of it tied up in inventory, and $23.3 million in liabilities. The largest single debts listed under unsecured creditors are convertible notes of $10 million from Atlanta-based broadband Internet provider Cox Communications and $6 million from investor Xerox Corp. Convertible notes are a form of investment in which a loan is to be converted to an equity stake at a later stage of fund-raising, acquisition or IPO. The investments had been announced but their amounts were not previously disclosed.
