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Humanigen is running out of options as talks over a reverse merger have collapsed and, with efforts to find another deal or raise funding failing, the biotech is considering filing for bankruptcy in the third quarter, FierceBiotech.com reported. The New Jersey-based biotech has been on the ropes since its anti-human GM-CSF monoclonal antibody failed to improve outcomes in hospitalized COVID-19 patients last year. Humanigen was already reeling from the FDA’s rejection of its request for emergency use authorization and the stock has stayed firmly rooted in penny stock territory ever since the late-phase flop. By the end of March, Humanigen was down to its last $3.1 million but a non-binding letter of intent with a private biopharma company presented an exit strategy. Humanigen was in exclusive negotiations over a stock-for-stock deal and seeking external financing in connection with the reverse merger.

Less than a month after laying off all of its workers, Anderson-based battery manufacturer EnerDel Inc. is declaring bankruptcy, the Indianapolis Business Journal reported. The company filed for chapter 7 bankruptcy July 13 in U.S. Bankruptcy Court for the Southern District Court of Indiana, claiming nearly $14 million in assets and $47 million in liabilities, according to the bankruptcy petition. The move was not unexpected. In June, the company fired its workforce without warning, former employees of the company told IBJ. It’s unclear how many workers were affected by the shutdown, but the company reported having 60 employees last year when it was acquired by Paul Herbert, a longtime board member at the company.

A management firm overseeing the development of a 320-acre youth sports complex in Arizona ended up overspending and shifting some money intended for construction into its own account, according to a bankruptcy court filing, Bloomberg News reported. The former manager, Legacy Sports, was tied to Randy Miller, a former professional baseball player who was the driving force behind the complex known as Legacy Park. Miller spent more than a decade pitching his vision for the facility, and a separate non-profit entity he founded with his son, Legacy Cares, was able to raise $280 million of debt in the municipal bond market starting in 2020 to help build it. But the complex faced construction delays, labor shortages and cancellations amid the pandemic. Its opening was pushed back, and even when it did start operating in 2022, COVID spikes cut into business. In May, Legacy Cares filed for bankruptcy. In a filing last week, Legacy Cares said that Legacy Sports, a for-profit entity that is no longer managing the facility, expected to be able to raise more money for the complex, and therefore spent money on additional improvements beyond the construction budget outlined in the offering materials for the bonds. Legacy Sports also asked for bond proceeds for its own operating expenses, beyond what the firm was entitled to receive, depleting funds available for construction, the filing said.

Party City Holdco Inc. is retaining documents and data in connection with a Securities and Exchange Commission probe, according to bankruptcy court papers, Bloomberg News reported. The regulator sent a letter to the bankrupt party supplies retailer on July 12 asking it to preserve and retain information “relevant to an ongoing investigation,” Party City said in court papers filed on Friday. The letter came a little more than a month after its longtime auditor, Ernst & Young LLP, resigned. The disclosure was included in a section on the accountant’s resignation. Additional details about the nature of the investigation, including its target, weren’t disclosed. Party City said it’s complying with the SEC’s request. After working as Party City’s financial auditor for more than two decades, EY quit in June in the wake of a disagreement about how and when the company should have warned the market there was substantial doubt about its ability to survive, the company said in a securities filing. “The company strongly disagrees with EY’s assertions in its resignation letter to the extent that they inaccurately imply that the company refused to make any required disclosures under the federal securities laws,” Party City said in the filing.
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AppHarvest said that it is pursuing a financial and operational transition, using chapter 11 bankruptcy, that would allow the company to reduce its outstanding liabilities, WSJ Pro Bankruptcy reported. The sustainable food company said business operations will continue at its farms, including shipping product to grocery store chains, restaurants and food-service outlets. To pursue its transition, AppHarvest has filed voluntary petitions for protection under chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court for the Southern District of Texas. The company also has obtained a commitment from Equilibrium, its largest secured creditor, to provide $30 million of debtor-in-possession financing to provide the necessary liquidity to support operations at the AppHarvest Morehead, AppHarvest Richmond and AppHarvest Somerset farms during the cchapter 11 process. The DIP financing is subject to approval of the court. AppHarvest is pursuing a transition of its AppHarvest Berea operations to its distribution partner, Mastronardi Produce, or one of its affiliates, in exchange for $3.75 million, additional incremental funding and support for the company’s restructuring plan.

Foxo Technologies, a Minneapolis-based biotech startup, is facing the prospect of bankruptcy if it cannot quickly secure new financing, the Minneapolis Star Tribune reported. Without the financing, "it will be unable to fund its operations," the company said in a Friday filing with the U.S. Securities and Exchange Commission. Besides bankruptcy, the company, which went public in September 2022, will look at dissolving or liquidating assets should need be, the filing said. Foxo also is reducing staff from 22 to 15 employees to cut operating expenses, the filing said. Foxo developed a saliva test that could be used to identify biomarkers to measure longevity. The concept was to market the data to life insurance companies. Foxo reported in May that first quarter revenue was $13,000, down from $40,000 in the same quarter the year before. Its net loss was $7.6 million, compared with a net loss of $12.3 million. Foxo went public last September in a merger with a Texas-based special purpose acquisition company. On its first day of trading the company's stock opened at $9.15 per share. On Friday Foxo's stock closed at 15 cents per share. Two months after going public, Foxo ousted CEO Jon Sabes and his brother, Chief Operating Officer Steven Sabes. In March, Foxo disclosed that it was under SEC investigation. The agency was seeking documents related to Sabes' exit from the company.

Master Lending Group LLC, a local to Savannah, Ga., and private investment group owned by Gregory Hirsch, filed for chapter 7 protection on July 6, WSAV.com reported. The hedge fund has between 100 and 199 creditors, according to a court filing, with the amount of losses to individual investors ranging from $10,000 to $3 million. In the court document, Hirsch lists over $6 million in property owned along Bull Street, West Victory and East River Street, just under $1 million in cash and $95,000 in a checking account, along with a $5 million life insurance policy. Those amounts do not add up to the total owed of $42.996 million. Along with the individual investor losses, the chapter 7 filing lists that Master Lending LLC and Gregory Hirsch are in breach of promissory note loans totaling $16,000,000.