A bankruptcy judge on Monday confirmed Palmaz Scientific Inc.’s reorganization plan, clearing the way for substantially all of the medical technology company’s assets to be sold to a company whose officials include Dr. Julio Palmaz’s wife.
Vactronix Scientific Inc. is expected to close on the purchase of Palmaz Scientific’s assets by July 19 or 20. Earlier this month, U.S. Bankruptcy Judge Craig Gargotta approved the sale to Vactronix after it was the sole bidder at an auction. The company submitted a $22.6 million offer for the assets, which primarily consist of 256 issued patents and 182 pending patents.
Gargotta confirmed the reorganization plan after shareholders accepted the plan. A court document shows that of Palmaz Scientific’s approximately 340 shareholders, only 119 filled out ballots. Of those, all but nine accepted the plan.
Vactronix was formed just before Palmaz Scientific’s bankruptcy filing in March. Palmaz Scientific was co-founded in 2008 by Dr. Palmaz, best known as the inventor of a heart stent credited with saving millions of lives. His plan was to produce the next generation of stents, but the company never generated any recurring revenue and eventually ran out of money. It had raised more than $40 million from investors.
Palmaz Scientific has blamed a “negative campaign of false information” for hurting its efforts to raise additional capital from investors.

Source mysanantonio