True Health Diagnostics files bankruptcy amid plans to sell assets

By Caroline Salls

Pittsburgh, July 31 – True Health Diagnostics LLC filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the District of Delaware and plans to sell substantially all of its assets.

Under bid procedures proposed by the company, bids would be due by Sept. 13. True Health said it could potentially select a stalking horse bidder for the assets.

An auction would be held on Sept. 17. The sale hearing is proposed to be held no later than Sept. 20, with a goal of closing the sale by Sept. 30.

Bids at auction must be made in minimum increments of $150,000.

In conjunction with the bankruptcy filing, True Health obtained a commitment for $7.85 million in debtor-in-possession financing.

Monroe Capital Management Advisors, LLC is the administrative agent.

The DIP facility is scheduled to mature on Sept. 28.

Interest will accrue at Libor plus 850 basis points.

According to court documents, True Health has up to $50,000 in assets and $100 million to $500 million in debt.

The company’s largest unsecured creditor is Diazyme, based in Pittsburgh, with a $1.12 million lab supplies claim.

No other unsecured creditors were listed with claims of $1 million or more.

The company is represented in the Chapter 11 proceedings by Morris, Nichols Arsht & Tunnell LLP.

True Health is a Richmond, Va.-based blood testing company. The Chapter 11 case number is 19-11689.

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