Health IQ files for Chapter 7
Health IQ has filed for bankruptcy with plans to liquidate.
The startup filed for Chapter 7 this week, listing assets at $1.3 million and liabilities at nearly $257 million, based on the filing. Of the liabilities figure, $189 million is owed to creditors with non-priority unsecured claims.
In the filing, Health IQ states that its investors and lenders, including Leadenhall, Triple Point and Silicon Valley Bank, were unwilling to continue to provide financing or support its proposal to reorganize the business in a case under Chapter 11. The filing also reveals that SVB received the intellectual property for Health IQ’s “Precision Medicare,” which was valued at $4.5 million.
In a recent earnings call, finance company TriplePoint said that Health IQ, which had a principal balance of $25.1 million, was downgraded to Category 5 (the lowest category in the lender’s own credit risk ratings system) due to ongoing challenges with the company’s execution and strategic efforts. In the filing, TriplePoint is listed as a creditor with a secured claim totaling $50 million.
Filing Chapter 7 bankruptcy halts litigation against Health IQ and requires the appointment of an independent trustee to sell company assets and wind-down the business.