POSTED: 12:43 p.m. HST, Jun 14, 2010
LAST UPDATED: 05:39 p.m. HST, Jun 14, 2010
A federal bankruptcy judge approved the potential sale today of Hawaii Biotech Inc. and set a July 19 auction date for the financially troubled company that is conducting clinical trials to produce vaccines for dengue fever and the West Nile virus.
“We have already reached out and have a number of potential investors who can keep the company moving forward,” said Elliot Parks, Hawaii Biotech chief executive officer.
Hawaii Biotech filed for Chapter 11 bankruptcy protection in December and is currently funding its operations with a $2 million line of credit. At the current rate of spending, the credit line is expected to be exhausted by the end of July, Parks said.
Companies must submit their qualifications to Bankruptcy Court by July 12. Judge Robert Faris cleared the way for the auction.
Faris said several conditions must be met before the auction can be conducted, including having Hawaii Biotech pay $180,000 in back rent it owes since the end of April.