Bankruptcy: Arch Therapeutics, Inc.
Form Type: 8-K
Filing Date: 2025-05-23
Corporate Action: Bankruptcy
Type: Update
Accession Number: 000164117225012288
Filing Summary: On April 18, 2025, Arch Therapeutics, Inc. and its subsidiary Arch Biosurgery, Inc. filed for Chapter 11 bankruptcy protection in Massachusetts. The company is currently operating as a debtor-in-possession. A stalking horse bid has been accepted for the majority of its assets, with potential cancellation of all equity securities and no recovery expected for shareholders. On May 23, 2025, the court approved postpetition financing and plans for a Chapter 11 plan of liquidation involving a Section 363 sale of assets. A hearing to approve the asset sale is scheduled for June 20, 2025. The company has defaulted on its convertible notes and faced difficulties with listing requirements, resulting in a reclassification of its securities on the OTC Markets. The company has also announced the resignation of its accounting firm, Weinberg & Company, P.A., and is struggling to fulfill its reporting obligations due to resource constraints.
Additional details:
Item Number: 1.03
Bankruptcy Case Number: 25-40409
Item Number: 1.03
Court District: District of Massachusetts
Item Number: 1.03
Stalking Horse Bid Acceptance: yes
Item Number: 1.03
Anticipated Outcome For Shareholders: no recovery
Item Number: 1.03
Financing Order Approved: yes
Item Number: 1.03
Scheduled Hearing Date: 2025-06-20
Item Number: 2.04
Event Of Default: yes
Item Number: 3.01
Market Reclassification: OTC Expert Market
Item Number: 4.01
Independent Accountant: Weinberg & Company, P.A.
Item Number: 8.01
Non Compliance Reason: insufficient personnel and financial resources
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