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KaloBios Pharmaceuticals Inc, which fired chief executive Martin Shkreli earlier this month, filed for chapter 11 protection yesterday, Reuters reported. The drugmaker listed both its assets and liabilities in the range of $1 million to $10 million in its filing with the U.S. Bankruptcy Court for the District of Delaware. The move comes on the heels of KaloBios' appeal of the Nasdaq decision to delist its shares. A hearing on the appeal has been scheduled for Feb. 25, KaloBios said yesterday. The company on Monday said that two of its directors, Tom Fernandez and Marek Biestekhad, had resigned in the wake of Shkreli's arrest for alleged securities fraud. KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of its shares. Shkreli was arrested on Dec 17 for engaging in what U.S. prosecutors said was a Ponzi-like scheme at a hedge fund and a pharmaceutical company he previously headed.

Millennium Health LLC is back on track to exit chapter 11 and pay off a $256 million settlement with the Justice Department, Dow Jones Daily Bankruptcy Review reported yesterday. Bankruptcy Judge Laurie Selber Silverstein on Friday lifted a stay of her order confirming the drug-testing company's chapter 11 plan, paving the way for Millennium's emergence from bankruptcy protection. The judge said that she found the threat to Millennium's survival and the preservation of 1,200 jobs outweighed the rights of Voya Investment Management to appeal her confirmation of the drug tester's plan at a hearing in U.S. Bankruptcy Court in Wilmington, Del. The Justice Department has accused Millennium of billing taxpayer-funded programs for unnecessary tests and giving physicians kickbacks to steer lucrative lab work its way. Millennium has admitted no wrongdoing, but agreed to the settlement. The company filed for chapter 11 protection to cement the settlement in place.

The future of Doctors' Hospital of Michigan in Pontiac will remain uncertain for at least another week after creditors failed yesterday to reach a conclusive vote on competing bankruptcy reorganization plans for the long-struggling hospital, the Detroit Free Press reported today. None of the three rival plans for buying the hospital out of bankruptcy attracted enough votes from the hospital's nearly 700 creditors to win confirmation by the U.S. Bankruptcy Court in Detroit. Judge Walter Shapero said that the creditors had questions about the feasibility of all three plans that will need hearings to resolve. A tightly packed series of court dates is scheduled for next week in hopes of confirming one of the two still-competing plans by Christmas Eve. The backer of a third reorganization plan backed out yesterday because of the plan's low vote tally.

Millennium Health LLC’s chapter 11 plan was confirmed on Monday, but it was almost immediately challenged with an appeal from Voya Investment Management, the Wall Street Journal reported today. Voya, formerly ING’s U.S. arm, is one of dozens of financial institutions that bought into a nearly $1.8 billion financing for Millennium in April 2014. A little over a year later, the drug-testing company revealed it was threatened with the loss of the right to bill government-funded programs due to fraud accusations from the Justice Department. Voya didn’t buy into the chapter 11 plan that was designed to provide funds to pay Millennium’s settlement with regulators. The lender is seeking a fast trip to federal appeals court to argue the plan unfairly blocks Voya’s right to sue Millennium’s departing owners. During confirmation hearings last week, Millennium and the lenders that supported the plan said repeatedly that the company’s survival is on the line. If Millennium can’t come up with funds to cover a $256 million settlement of the fraud charges by Dec. 30, the Justice Department could move to strip the laboratory testing company of its government billing privileges, lawyers said.

Millennium Health LLC’s chapter 11 plan cleared a major hurdle on Friday when a bankruptcy judge brushed aside objections to the plan, which funds a $256 million settlement of fraud accusations with the Justice Department, the Wall Street Journal reported on Saturday. Judge Laurie Selber Silverstein approved the bulk of a reorganization strategy designed as a fresh start for the drug-testing company. Millennium hasn’t admitted to civil charges that it fraudulently billed taxpayers. The judge withheld her signature while pondering the form of the order she is being asked to sign. Assuming she grants confirmation at a hearing on Tuesday, lenders will take over from the existing owners, including James Slattery, who founded Millennium, and TA Associates, a private-equity firm that owns a minority stake in the company. At a hearing on Friday in the U.S. Bankruptcy Court in Wilmington, Del., Judge Silverstein cited a looming Dec. 30 deadline for Millennium to cover the settlement or face revocation of its right to bill Medicare and other government programs.

CBRE Capital Markets is working to sell the shuttered Forest Park Medical Center San Antonio, and the final price tag could hover around $100 million, the San Antonio Business Journal reported today. Parties interested in acquiring the real estate have until Dec. 18 to submit offers. On Oct. 7, it was reported that FPMC San Antonio Realty Partners LP, which owns the real estate and improvements where Forest Park Medical Center San Antonio was located, had filed for chapter 11 protection. FPMC reportedly defaulted on a loan of more than $68 million from Texas Capital Bank, which has requested that the property be sold. CBRE is working on behalf of FPMC San Antonio Realty Partners and Texas Capital Bank to secure a buyer for the real estate. The plan is to get a deal closed by early February, according to Scott Herbold, first vice president of CBRE Capital Markets.

A bankruptcy judge yesterday approved a for-profit hospital chain's $62.2 million bid to buy Saint Michael's Medical Center in Newark, N.J., although the hospital's future remains in the hands of Gov. Christie’s administration, NJ.com reported today. Prime Healthcare Services of Ontario, Calif. announced plans to acquire the 148-year-old facility three years ago, but the state Attorney General's Office and the Department of Health have not yet completed their review of the application to determine if is in the public's best interest. Frustrated by the long wait, Saint Michael's executives filed for bankruptcy in August to protect the cash-starved hospital from having to make its monthly $1.8 million payment to the New Jersey Healthcare Facilities Financing Authority. The hospital owes the state $228 million in bonds.