Today, Neurologix Inc. announced it was liquidating by filing Chapter 7 bankruptcy. Neurologix is a clinical stage developer of gene therapies for brain disorders and central nervous system problems. The New Jersey-based company listed assets in the bankruptcy filing of $1.2 million and debt of $12.9 million. The Chapter 7 bankruptcy will allow the company to liquidate their assets while being protected from their creditors by the automatic stay. The company currently has been working on programs to address conditions from Parkinson’s disease, epilepsy, Huntington’s disease and even depression.
In the bankruptcy filing, the Chapter 7 bankruptcy documents showed the company is owned by Corriente Advisors LLC with a 23% stake, General Electric Pension Trust with a 20% stake, Palisades Private Partnership LP with a 12% stake, DaimlerChrysler Corporation LLC Master Retirement Trust with a 7% holding and Atec Trust with a 6% stake.
It didn’t come as much of a surprise to see Neurologix filing bankruptcy because of posting consistent losses in recent earnings. The stock had a 52 week high of a $1.01 and today closed at $.02 after announcing it was filing for bankruptcy under Chapter 7. In today’s economy, it’s become very common to see small companies filing bankruptcy but usually under Chapter 11.