HemCon Medical Technologies Inc Announces Bankruptcy
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PRESS RELEASE - HemCon Medical Technologies Inc Enters Bankruptcy
Wounded by a federal court ruling, bandage-maker HemCon Medical Technologies Inc. has filed for Chapter 11 bankruptcy.
The petition for reorganization was filed by the Portland company Tuesday, four weeks after an adverse patent infringement ruling put HemCon on the hook for $34.2 million in damages. The ruling, provided by a 10-judge panel of the U.S. Federal Circuit Court, was handed down after six years of litigation with Massachusetts-based competitor Marine Polymer Technologies Inc.
“Chapter 11 gives us a number of tools, and protection (from creditors)” HemCon President and Chief Financial Officer Nick Hart said.
Those protections include staying the damages award.
“It’s absolutely our intent to continue to supply our customers with life-saving products which are used every day,” Hart said.
He noted that last year the company reformulated its bandage products that are based on chitosan, a substance derived from shrimp that aids in blood clotting, so that the products would clearly no longer violate Marine Polymer’s patent.
Hart said the court ruling was a major factor behind filing the petition. He said the company will petition the circuit court to rehear an important element of the case. Beyond that, appealing to the U.S. Supreme Court is a possibility, he said.
HemCon’s Chapter 11 petition, filed in the U.S. Bankruptcy Court for Oregon, states the company has assets of $10 million to $50 million, and gives the same broad range for debts.